All of the following regarding the current ratio are true except: Multiple Choice Current ratio is calculated by dividing current assets by current liabilities. The current ratio helps to assess a company's ability to pay its debts in the near future. The current ratio does not affect a creditor's decision on whether to allow a company to buy on credit. The current ratio can affect a creditor's decision about whether to lend money to a company. The current ratio can reveal challenges in covering short-term obligations if it is less than 1.

Related Questions

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