Which of the following statements regarding liquidity ratios is true?

Question 35 options:

	A low acid-test ratio generally indicates the abiltiy to pay current liabilities on a timely basis.
	All current assets are due within one year and therefore have essentially equal liquidity.
	A high working capital generally indicates the ability to pay current liabilities on a timely basis.
	A low current ratio generally indicates the ability to pay current liabilities on a timely basis.