Which of the Following Statements Regarding Liquidity Ratios Is False

question 112

Multiple Choice

Which of the following statements regarding liquidity ratios is false?

• A)A high current ratio generally indicates the ability to pay current liabilities on a timely basis.
• B)A high acid-test ratio generally indicates the ability to pay current liabilities on a timely basis.
• C)All current assets are due within one year and therefore have essentially equal liquidity.
• D)As a rule of thumb,a current ratio of 1 or higher often reflects an acceptable level of liquidity.

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Definitions:

Natural Selection

A major mechanism of evolution: the differential survival and reproduction of individuals of a population based on differences in shared, heritable traits. Outcome of environmental pressures.

Disruptive Selection

An evolutionary process that favors individuals at both extremes of a trait distribution over the average phenotype.

Finch Species

Refers to various types of finches, small to medium-sized passerine birds, known for their diversity in beak shapes and sizes, which reflect their dietary preferences.

Separate Species

A biological concept defining groups of organisms that can interbreed freely under natural conditions but do not breed with other such groups.