A Low Current Ratio Indicates That a Company Has Sufficient

question 36

True/False

A low current ratio indicates that a company has sufficient current assets to pay current liabilities as they become due.

---

Definitions:

Coefficient Alphas

A statistical measure used to assess the reliability or internal consistency of a test or scale.

Homogeneity

The degree to which a set of elements, such as group members or data points, are similar or uniform in nature.

Reliability Estimates

Statistical measures that assess the consistency or repeatability of a scale, test, or measurement tool over time.

Exploratory Factor Analysis (EFA)

A statistical technique used to identify underlying structures (factors) that explain patterns of correlations within a set of observed variables.