The current ratio should be interpreted by considering all but
A) general economic and industry conditions.
B) other special financial information.
C) other firms in the same or related industry.
D) other firms in unrelated industries.

Question

Quizplus · Accepted Answer

The current ratio, which measures a company's ability to pay short-term obligations, should be interpreted by considering factors such as general economic and industry conditions, special financial information, and comparisons with other firms in the same or related industry. Other firms in unrelated industries may have different financial norms and conditions, making such comparisons less relevant.

The Current Ratio Should Be Interpreted by Considering All but