Which of the Following Statements Concerning the Current Ratio Is

question 47

Multiple Choice

Which of the following statements concerning the current ratio is incorrect?

• A) The current ratio can be manipulated at balance date,e.g. by using cash to pay off short-term debt.
• B) A high current ratio may indicate excessive investment in working capital.
• C) A low current ratio may indicate difficulty in meeting short-term commitments.
• D) A current ratio of 1.5 to 1 should always be maintained.

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Definitions:

Voided Urine

The act of emptying the bladder of urine.

Acute Renal Failure

A sudden and often temporary loss of kidney function, which results in the accumulation of waste products and fluids in the body.

24-Hour Urine Specimen

A diagnostic test involving the collection of all urine produced in a 24-hour period to assess various components for medical analysis.

Health Care-Associated Infections

Infections that patients acquire during the course of receiving treatment for other conditions within a healthcare setting.