A Current Ratio of Less Than 1

question 103

True/False

A current ratio of less than 1.0 means that current assets exceed current liabilities.

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Definitions:

Life Cycle

A series of stages through which something (such as a product, organization, or individual) goes during its lifetime, from inception to termination or renewal.

Maturity Stage

A phase in the product lifecycle where sales growth slows down, and the product is widely accepted in the market.

Market Success

The achievement of significant positive outcomes in the marketplace, such as high sales, strong brand recognition, or consumer loyalty.

Financial Stability

The condition when an organization or individual has a strong and sustainable financial position, capable of withstanding economic fluctuations.