Liquidity Problems Are Likely to Exist When a Company's Acid-Test

question 210

Multiple Choice

Liquidity problems are likely to exist when a company's acid-test ratio:

• A)Is less than the current ratio.
• B)Equals 1.
• C)Is higher than 1.
• D)Is substantially lower than 1.
• E)Is higher than the current ratio.

---

Definitions:

Substantial Commitment

A significant dedication or pledge of resources, time, or effort towards a particular course of action or project.

Affirmative Action

Policies and measures designed to increase the representation of minorities and women in areas of employment, education, and business from which they have been historically excluded.

Minorities

Groups of people who are distinct from the majority population based on ethnic, racial, religious, or linguistic characteristics, often experiencing differential treatment or marginalization.

Change Leader

Someone who takes initiative in trying to change the behaviour of another person or within a social system.