Which of the Following Would Improve a Current Ratio That

question 42

Multiple Choice

Which of the following would improve a current ratio that is now 1.2?

• A)Selling long-term assets for cash.
• B)Purchasing land for cash.
• C)Buying equipment in exchange for a two-year note.
• D)Purchasing inventory on account.

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Definitions:

Total Fertility Rate

The average number of children that would be born to a woman over her lifetime based on current age-specific fertility rates.

Replacement Rate

The proportion of an individual's pre-retirement income that is paid out by a pension program upon retirement.

Demographic Transition

A model that describes the transformation of countries from having high birth and death rates to low birth and death rates as a society progresses economically and socially.

World Population

The total number of living humans on Earth at a given time, which affects resource demand, environmental sustainability, and global policies.