All of the Following Regarding Current Ratio Are Except

question 50

Multiple Choice

All of the following regarding current ratio are except:

• A) Current ratio is calculated by dividing current assets by current liabilities.
• B) Current ratio helps to assess a company's ability to pay its debts in the near future.
• C) Current ratio does not affect a creditor's decision on when to allow a company to buy on credit.
• D) Current ratio can affect a creditor's decision about whether to lend money to a company.
• E) Current ratio can reveal problems in a company if it is less than 1.

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Definitions:

Target's Perception

How an individual or entity perceives or interprets actions, intentions, or attitudes directed towards them.

Strategic Contingencies

Situations or events that significantly impact an organization's ability to achieve its objectives, requiring strategic planning and responses.

Subunit Power

The influence and control that a specific department, division, or group within an organization has over decisions and resources.

Workflow Centrality

The importance or criticality of a particular process or task within the overall set of organizational activities, often determining its impact on productivity and efficiency.