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:

Government Organizations

Entities established and funded by a government to perform specific functions or provide services to the public.

Flexibility

The ability to adapt quickly and effectively to changing conditions and circumstances.

Market Failure

A circumstance in which a free market's distribution of goods and services is inefficient, frequently warranting intervention by the government.

Contract Failure

A situation where the market fails to provide an efficient outcome, leading to a gap that nonprofits often aim to fill.