Which of the following statements are true? Check all that apply.
A current ratio of 1 indicates that the book value of the company's current assets is equal to the book value of its current liabilities.
Gaia Group has a better ability to meet its short-term liabilities than Virtual Industries
If a company has a quick ratio of less than 1 but a current ratio of more than 1, and if the difference between the two ratios is large, it
would mean that the company depends heavily on the sale of its inventory to meet its short-term obligations.
As compared to Virtual Industries, Gaia Group has lesser liquidity and relatively greater reliance on outside cash flow to finance its short-
term obligations.