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