The current ratio is a good indicator of the degree to which a firm relies on borrowed funds in its operations.

Name: The current ratio is a good indicator of the degree to which a firm relies on borrowed funds in its operations.
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The current ratio measures a company's ability to pay short-term obligations with its short-term assets, not the degree to which it relies on borrowed funds. The debt-to-equity ratio is a better indicator of reliance on borrowed funds.

The Current Ratio Is a Good Indicator of the Degree