A low current ratio indicates that a company has sufficient current assets to pay current liabilities as they become due.

Name: A low current ratio indicates that a company has sufficient current assets to pay current liabilities as they become due.
Brand: Quizplus
Rating: 5.0 (27 reviews)

Question

Quizplus · Accepted Answer

A low current ratio indicates that a company may not have enough current assets to pay current liabilities as they become due. A high current ratio indicates the opposite - that a company has more than enough current assets to pay current liabilities.

A Low Current Ratio Indicates That a Company Has Sufficient