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Which of the following statements about the current ratio is FALSE ? A. The higher the current ratio, the higher the level of cash must

Which of the following statements about the current ratio is FALSE?

A. The higher the current ratio, the higher the level of cash must be for the firm. B. This ratio is a meaningful measure of liquidity because the book value of the assets and liabilities used in the calculation tend to deviate only slightly from market values. C. This ratio is intended to indicate the short-run liquidity position of the firm.

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