A current ratio of 2.0 is desirable and it means that a firm has twice as many current liabilities as current assets.
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Q16: Ratios standardize balance sheet and income statement
Q17: Liquidity ratios are one of the five
Q18: Market value ratios are one of the
Q19: Trend or time series analysis is used
Q20: Profitability ratios are one of the five
Q22: Liquidity ratios indicate the ability to meet
Q23: Asset management ratios indicate the ability to
Q24: Because debt obligations are paid with cash,
Q25: The current ratio is always positive.
Q26: Net working capital indicates the percentage of
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