A Company Should Maintain a Current Ratio of Two to One

question 165

Multiple Choice

A company should maintain a current ratio of two to one when

• A)Estimating customer demand is difficult
• B)The company grants little or no credit
• C)The company is selling low priced clothing
• D)Inventory turns over frequently
• E)The company has little inventory

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Definitions:

Heuristic Fallacies

Errors or biases in judgment or decision-making, arising from the use of mental shortcuts or heuristics.

Self-harm

The act of deliberately inflicting pain and damage to one's own body, often as a coping mechanism for emotional distress.

Involuntarily Hospitalized

Refers to the process whereby individuals are admitted to a mental health facility without their consent, usually because they are deemed a threat to themselves or others.

Serious Bodily Harm

Significant physical injury that creates a substantial risk of death or causes serious, permanent disfigurement, or loss or impairment of the function of a body part.