Having liabilities classified incorrectly will have a big impact on the company's current and quick ratios.

Question

Quizplus · Accepted Answer

Liabilities play a significant role in determining a company's current and quick ratios. If liabilities are classified incorrectly, it can affect the accuracy of these ratios, which are important measures of a company's liquidity and ability to meet its short-term obligations. Therefore, having liabilities classified incorrectly can have a significant impact on a company's financial health.

Having Liabilities Classified Incorrectly Will Have a Big Impact on the Company's