Answer the following questions regarding the current ratio:
Current Ratio Question Answer
What does the current ratio measure?
How is the current ratio calculated?
When analyzing the current ratio, what is the rule of thumb?
What will be an ideal response
Current Ratio Question Answer
What does the current ratio measure? The current ratio measures the company's ability to pay current liabilities from current assets.
How is the current ratio calculated?
Total current assets / Total current liabilities
When analyzing the current ratio, what is the rule of thumb? A strong current ratio is 1.50, which indicates that the business has $1.50 in current assets for every $1.00 in current liabilities.
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A) to enhance corporate image B) to express commitment to the community or on social issues C) to entertain key clients or reward key employees D) to create perceptions of key brand image associations E) to become part of a personally relevant moment in consumers' lives
Billable hours are frequently used to determine compensation in large law firms
Indicate whether the statement is true or false