All of the following regarding the current ratio are true except:
A. Current ratio helps to assess a company's ability to pay its debts in the near future.
B. Current ratio does not affect a creditor's decision on whether to allow a company to buy on credit.
C. Current ratio can reveal challenges in covering short-term obligations if it is less than 1.
D. Current ratio can affect a creditor's decision about whether to lend money to a company.
E. Current ratio is calculated by dividing current assets by current liabilities.
Answer: B
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