{"id":77333,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/the-current-ratio-measures-the-degree-to-which-current-assets-cover-current-liabilities-a-high-ratio-indicates-a-good-probability-that-the-company-can-retire-current-debt-2"},"modified":"2017-08-18T07:13:40","modified_gmt":"2017-08-18T07:13:40","slug":"the-current-ratio-measures-the-degree-to-which-current-assets-cover-current-liabilities-a-high-ratio-indicates-a-good-probability-that-the-company-can-retire-current-debt-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/the-current-ratio-measures-the-degree-to-which-current-assets-cover-current-liabilities-a-high-ratio-indicates-a-good-probability-that-the-company-can-retire-current-debt-2\/","title":{"rendered":"The current ratio measures the degree to which current assets cover current liabilities. A high ratio indicates a good probability that the company can retire current debt."},"content":{"rendered":"<p><a class=\"current-ratio-measures-degree-current-assets-cover-current-liabilities-high-ratio-indicates-good-probability-company-can-retire-current-debt\/\"><\/a> <\/p>\n<p>The current ratio measures the degree to which current assets cover current liabilities. A high ratio indicates a good probability that the company can retire current debt.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>When long term debt exceeds stockholder\u2019s equity, the current ratio will fall.&nbsp; What effect will reclassifying a long term investment into cash within one year have on the current ratio? Is a firm\u2019s true financial position stronger as a result of reclassifying investments? What are the ethical ramifications of re-classifying investments?<\/p>\n<p>&nbsp;<\/p>\n<p>Give an example of when reclassifying a long term investment as a short term investment makes financial sense for the company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The current ratio measures the degree to which current assets cover current liabilities. A high ratio indicates a good probability that the company can retire current debt. &nbsp; &nbsp; When long term debt exceeds stockholder\u2019s equity, the current ratio will <a href=\"https:\/\/www.benedictsol.com\/blogs\/the-current-ratio-measures-the-degree-to-which-current-assets-cover-current-liabilities-a-high-ratio-indicates-a-good-probability-that-the-company-can-retire-current-debt-2\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-77333","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=77333"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77333\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=77333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=77333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=77333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}