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If a company's current ratio (current assets / current liabilities) is 2.5, which of the following statements is false ? The company has 2.5 times
If a company's current ratio (current assets / current liabilities) is 2.5, which of the following statements is false?
The company has 2.5 times the number of current assets as it does current liabilities. | ||
The company's short-term solvency appears to be better than the standard benchmark value of 2. | ||
The company's quick ratio (acid-test) must be more than 2.5. | ||
None of the answers listed are false. |
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