A lower current ratio or acid-test ratio generally indicates a greater ability to pay current liabilities on a timely basis.

Name: A lower current ratio or acid-test ratio generally indicates a greater ability to pay current liabilities on a timely basis.
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A lower current ratio or acid-test ratio indicates a lower ability to pay current liabilities on a timely basis. A higher current ratio or acid-test ratio generally indicates a greater ability to pay current liabilities.

A Lower Current Ratio or Acid-Test Ratio Generally Indicates a Greater