Which of the Following Statements Is an Accurate Interpretation of the Current

question 137

Multiple Choice

Which of the following statements is an accurate interpretation of the current ratio?

• A) A current ratio of 1.5 or higher is considered a high-risk ratio.
• B) A current ratio below 1.00 is considered a good and safe ratio.
• C) A current ratio of 2.0 indicates a strong ability to pay current liabilities.
• D) A current ratio of 0.60 or lower is a good and safe ratio.

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Definitions:

Legally Not Enforceable

Describes agreements or contracts that cannot be upheld or mandated by law.

Verbal And Written

Pertains to the forms of communication: verbal being spoken language, and written being text-based communication.

Customer Satisfaction

A measure of how products or services supplied by a company meet or exceed the expectations of its customers.

Team Member Satisfaction

This refers to the level of contentment and positivity felt by individuals within a team, impacting morale and work effectiveness.