Current ratios of 1.0 or less are considered
A) To show excessive liquidity
B) Low and indicative of potential financial problems
C) Average
D) Very positive

Name: Current ratios of 1.0 or less are considered A) To show excessive liquidity B) Low and indicative of potential financial problems C) Average D) Very positive
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Current ratios of 1.0 or less indicate that a company has more current liabilities than current assets, which can be a sign of potential financial problems.

Current Ratios of 1.0 or Less Are Considered