a) Operating cycles for most businesses are less than one year. b) If a business does not plan to use any of its current assets to repay a debt, then that debt is listed as long term even if it is due within a year. c) The current ratio is computed by dividing current assets by net income. d) The current ratio is a useful measure of a company's liquidity. e) Liquidity is the ability of a business to repay liabilities in the long run.
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a) Operating cycles for most businesses are less than one year. b) If a business does not plan to u...
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