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In comparing the current ratios of two companies, why is it invalid to assume that...

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Accounting

In comparing the current ratios of two companies, why is it invalid to assume that the company with the higher current ratio is the better company?

a. A high current ratio may indicate inadequate inventory on hand

b. A high current ratio may indicate inefficient use of various assets and liabilities

c. The two companies may define working capital in different terms

d. The two companies may be different sizes

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