All of the following regarding current ratio are true

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.