Sufficient short-term assets to meet short-term obligations

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Reference no: EM131991201

A current ratio less than 1.0 means that a firm presently has: a. not enough assets that will convert to cash in time to pay all of the debts payable within the next twelve months. b. a positive net working capital and a quick ratio which is also less than 1.0. c. less debts due within the next year than assets that should convert to cash within that same time period. d. less total assets than it does debts payable within the upcoming twelve months. e. sufficient short-term assets to meet its short-term obligations provided that all assets sell at their stated book value.

Reference no: EM131991201

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