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Which of the following statements regarding liquidity ratios is false? A high current ratio generally indicates the ability to pay current liabilities on a timely
Which of the following statements regarding liquidity ratios is false?
A high current ratio generally indicates the ability to pay current liabilities on a timely basis.
A high acid-test ratio generally indicates the ability to pay current liabilities on a timely basis.
All current assets are due within one year and therefore have essentially equal liquidity.
As a rule of thumb, a current ratio of 1 or higher often reflects an acceptable level of liquidity.
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