Which of the following statements is false?
A) A company generally prefers to have a high debt ratio.
B) The current ratio measures the ability to pay current liabilities with current assets.
C) The debt ratio measures a business's ability to pay both current and long-term liabilities.
D) A company generally prefers to have a high current ratio.
Correct Answer:
Verified
Q101: Intangible assets are classified on the balance
Q102: Table 4-2
The ledger accounts for Alice's
Q103: Table 4-6
Selected accounting data as at
Q104: Table 4-6
Selected accounting data as at
Q105: Table 4-5
Selected accounting data for Dustman
Q107: Table 4-2
The ledger accounts for Alice's
Q108: The debt ratio is computed by:
A)dividing owner's
Q109: Table 4-3
Selected accounting data for the
Q110: Table 4-2
The ledger accounts for Alice's
Q111: Table 4-4
Selected accounting data as at
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