The table shown below compares the current ratios of two companies. Of the statemen provided, which one best describes the conditions of these two companies? Current Ratio Company A Company B 2022 2023 2.25 1.02 1.16 3.14

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The table shown below compares the current ratios of two companies. Of the statements
provided, which one best describes the conditions of these two companies?
Current
Ratio
Company
A
Company
B
2022 2023
2.25 1.02
1.16 3.14
Company B is in a better position of withstanding short-term financial stress from 2022 to 2023
Company B is struggling with its ability to be profitable
Company A is doing a better job of paying its bills from 2022 to 2023
O Company A has increased sales from 2022 to 2023
Transcribed Image Text:The table shown below compares the current ratios of two companies. Of the statements provided, which one best describes the conditions of these two companies? Current Ratio Company A Company B 2022 2023 2.25 1.02 1.16 3.14 Company B is in a better position of withstanding short-term financial stress from 2022 to 2023 Company B is struggling with its ability to be profitable Company A is doing a better job of paying its bills from 2022 to 2023 O Company A has increased sales from 2022 to 2023
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