Last Year,ABC Tools Had a Current Ratio of 2

question 31

Multiple Choice

Last year,ABC Tools had a current ratio of 2.0 and an acid-test ratio of 1.0.This year the firm's current ratio is 2.5 and its acid-test ratio is 1.5.ABC's _____ has _____.

• A)profitability; improved
• B)profitability; deteriorated
• C)liquidity; improved
• D)liquidity; deteriorated

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Definitions:

Planning

The ability to allocate attentional resources on the basis of goals that one wishes to achieve.

Middle-aged People

Individuals typically in the age range of 40 to 65, often experiencing significant life transitions, reassessment of life achievements, and physiological changes.

Memory Loss

The partial or total inability to recall past experiences or information, which may result from brain injury, disease, or psychological trauma.

Absentminded

A state of being easily distracted and forgetful, often due to lack of attention or concentration.