Question: Statement 1: Companies in the same industry may use different accounting methods, diminishing the usefulness of some industrial averages. Statement 2: The current ratio is

Statement 1: Companies in the same industry may use different accounting methods, diminishing the usefulness of some industrial averages. Statement 2: The current ratio is a measure of the ability of a company to pay all its liabilities out of short-term assets.

A. Both statements are true

B. Both statements are false

C. Only statement 1 is true

D. Only statement 2 is true

Please provide a comprehensive explanation for your answer.

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