4. For the current ratio, (D) incpensing 5. Current liabilities are usually paid off with current assets. The corporation not able to pay off all current liabilities at this time is (Gap Inc / GM/Home Depot / Oracle). Does this indicate the corporation is insolvent, or unable to pay its bills? (Yes/No) Explain. 6. A low current ratio generally indicates a lack of short-term liquidity. In general, such a firm will be required to pay (higher / lower) interest rates when borrowing money. Page 7 Introduction