If you know the mean financial ratios in Japan, Korea, and the United States Current Debt Return Return Ratio Ratio on on Assets Equity japan (n = 976) 11.5 1.45 1.2 1.13 Korea in= 354) 0.5 0.75 1.06 1.15 United States (n=902) 1.00 1.20 1.15 0.5 Current ratio in Japan is better than current ratio in Korea. T/E Answer:

The current ratio evaluates the desire of an organization to pay within one year for short-term commitments.

The current ratio explains that how an organization should optimize the current assets on the balance sheet in order to meet its current debt and other payables to investors and analysts.

The formula of current ratio = Current assets / Current liabilities

Here we can see that Japan's current assets 1.5 than a current liability and in Korea current assets are 0.5 than a current liability. So, Japan's current ratio is better than Korea's.

Therefore the correct answer is True.