What Is a Weakness of the Current Ratio

question 76

Multiple Choice

What is a weakness of the current ratio?

• A) Hard to calculate.
• B) Hard to obtain the information.
• C) Favors companies with many current assets, but doesn't measure the overall company strength.
• D) Doesn't consider enough financial information to be useful.

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Definitions:

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A clear liquid secreted by the salivary glands in the mouth, important for digestion and maintaining oral health.

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