If the current ratio was 1.95 in 2012 and is 1.86 in 2013, how would managers interpret
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Question:
If the current ratio was 1.95 in 2012 and is 1.86 in 2013, how would managers interpret this change?
a) A current ratio of 1.95 is worse than a 1.86 ratio.
b) Both ratios are unacceptable because they are greater than 1.0.
c) A current ratio of 1.95 means that there is $1.95 of total assets for each dollar of liabilities.
d) The current ratio has worsened during the year, but it appears to be still acceptable.
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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