Answered: Current Ratio is a measure used to…

Current Ratio is a measure used to assess the liquidity of the company, computed as current assets divided by current liabilities. O True False

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 24CYBK

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True or False
Current Ratio is a measure used to assess the liquidity of the company,
computed as current assets divided by current liabilities. *
True
O False
Making sales using credit cards is a way a company can dispose its receivables.

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