CHAPTER 8 QUIZ 54 Which of the following statements about liquidity ratios is true? A) The higher the current ratio, the more likely a firm is able to pay its short-term obligations. B) The lower the quick ratios relative to the current ratio, the safer a firm is in terms of liquidity. C) The ratio of net working capital to total assets always lies between 0 and 1. D) Relatively high current ratios are usually a sign of efficient working capital management.
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