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

---

Definitions:

Silk

A natural fiber known for its luster and softness, produced by the larvae of silk moths, used in the manufacture of luxurious fabrics.

Price Taker

A firm or individual who accepts the prevailing prices in the market since they do not have the power to influence it.

Small Country

A nation with a smaller geographic area or population, often with less impact on global economic trends.

International Trade

Conducting transactions of goods and services over the boundaries of nations or territories.