If all else is held equal,an increase in the current ratio of a company is generally considered to be:
A) an indication that current assets have decreased
B) an indication that current liabilities have increased
C) an indication that the company will have increased difficulty meeting short-term obligations
D) an indication that the company will be better able to meet short-term debt obligations

Question

Quizplus · Accepted Answer

An increase in the current ratio means that the company's current assets have increased relative to its current liabilities. This indicates that the company will be better able to meet its short-term debt obligations.

If All Else Is Held Equal,an Increase in the Current