A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Name: A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.
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Question

Quizplus · Accepted Answer

An increase in the current ratio means that the company has more current assets relative to its current liabilities, indicating that it is better able to meet its short-term obligations.

A Current Ratio That Has Increased from the Prior Period