If a Company's Current Ratio Increases from 1

question 70

Multiple Choice

If a company's current ratio increases from 1.1 to 1.3 from one year to the next, it can be concluded that:

• A)the liquidity has increased.
• B)the current assets have increased.
• C)the current liabilities have decreased.
• D)None of the above

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Definitions:

Acute Stress Disorder

A mental health condition triggered by a traumatic event, featuring symptoms such as anxiety, detachment, and nightmares, occurring shortly after the trauma and lasting for up to one month.

Magnitude

The size, extent, or importance of something, often used in a quantitative context to measure variables.

Terrified

A state of intense fear that can be the result of real or perceived threats, causing significant distress.

Predisposition

An inborn or acquired vulnerability for developing certain symptoms or disorders.