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Which of the following statements regarding the current ratio is NOT true? The current ratio is calculated as total current assets divided by total current
Which of the following statements regarding the current ratio is NOT true? The current ratio is calculated as total current assets divided by total current liabilities. The current ratio is less stringent than the acid-test ratio and the cash ratio because it includes all current assets in the calculation A low current ratio indicates a business has sufficient current assets to maintain normal business operations. The acceptable current ratio depends on the industry, but the norm for companies in most industries is 1.5
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