A Company's Current Ratio Is Decreasing Every Year and Currently

question 141

Multiple Choice

A company's current ratio is decreasing every year and currently stands at 1.00.This indicates:

• A)an improving financial position.
• B)an improving liquidity position.
• C)a declining ability to pay current liabilities.
• D)an increase in profitability.

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Definitions:

Leprechauns

Mythical creatures in Irish folklore, often depicted as small, bearded men who partake in mischief.

Enthymeme

An argumentative technique that operates as a syllogism but omits one of its premises.

Validity

The degree to which a method, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Distributed

The process of spreading things or people over a wide area or among a large number of recipients.