Which of the following is true regarding the relationship between the current ratio and the acid-test ratio?
A) The current ratio will always be equal to or larger than the acid-test ratio for a specific company.
B) The acid-test ratio will always be equal to or larger than the current ratio for a specific company.
C) Either the current ratio or the acid-test ratio could be larger for a specific company.
D) One ratio will always exceed 1.0,while the other will always be less than 1.0.
Correct Answer:
Verified
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