Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 36)
What could cause a business to have a poor current ratio?
A low level of current liabilities
A high level of current assets.
The combined value of all its assets is sufficient in cash
Insufficient combined value of all its assets in cash to pay current liabilities
Giải thích
A poor current ratio is indicative of a business which doesn't have enough cash or liquid assets to pay off its current liabilities