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One Problem with Ratio Analysis Is That Relationships Can Sometimes

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One problem with ratio analysis is that relationships can sometimes be manipulated.For example,if our current ratio is greater than 1.5,then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to INCREASE.


Definitions:

Sustained Remission

A term referring to the period during which an individual maintains recovery from substance use disorders, showing no symptoms of the disorder over an extended time.

Time Frame

A period during which a sequence of events or an action takes place or is completed.

Co-occurring Psychiatric Disorder(s)

The presence of two or more psychiatric disorders in an individual at the same time, often requiring integrated treatment.

Secondary Substance Abuse Model

A theory suggesting that substance abuse may develop due to the influence of external factors such as environmental stressors, rather than primary addiction alone.

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