Question: Google is much more profitable than Amazon.com because its current ratio is nine times larger than Amazon's. Do you agree? Explain A. No. The current
"Google is much more profitable than Amazon.com because its current ratio is nine times larger than Amazon's." Do you agree? Explain
A. No. The current ratio does not give any information about liquidity. It measure profitability only.
B. No. The current ratio does not give any information about profitability. It is a measure of liquidity. Measures of profitability include the gross profit percentage, return on sales, and return on common stockholders' equity.
C. No. The current ratio does not give any information about profitability. It is a measure of liquidity. Measures of profitability include the sales revenues, accounts payable, and accounts receivable.
D. None of the above.
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