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QUESTION ANSWER Which of the following is generally a FALSE statement for the current ratio analysis? Current ratios measure

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Answer: Company Wants the Current ratio below 1

Current Ratio is one of the key ratios to measure the short term solvency and liquidity of the firm .it analyze the ratio between the current assets and current liabilities. A Higher current ratio is an indication of strong solvency and a higher liquidity position. if the Current ratio falls to below 1, the solvency of the firm will deteriorate and it is not a good sign for the firms. firms want to maintain the Current Ratio Above 1

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