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Ratios: Working Capital and the Current Ratio
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Problem 10
Ratios: Working Capital and the Current Ratio
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14. Financial Statement Analysis / Ratios: Working Capital and the Current Ratio / Problem 9
Problem 9
What does a current ratio below 1.0 indicate about a company's financial health?
A
The company has more current assets than liabilities.
B
The company has a strong long-term financial position.
C
The company is highly profitable.
D
The company may face liquidity problems as it has fewer current assets than liabilities.
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