Normally a Lower Current Ratio Indicates a Better Financial Position,for

question 21

True/False

Normally a lower current ratio indicates a better financial position,for it implies that that a company has adequate liquidity to carry out business operations.

---

Definitions:

Cycle Time

The maximum time that a product is allowed at each workstation.

Design Capacity

The theoretical maximum output of a system in a given period under ideal conditions.

Theoretical Maximum

The highest possible outcome or performance level under ideal conditions with no constraints or limitations.

Rated Capacity

The maximum amount of output or processing that a machine, system, or facility can consistently achieve under normal conditions.