Golden Fritter Corporation Has a Current Ratio Equal to Three

question 4

Multiple Choice

Golden Fritter Corporation has a current ratio equal to three.If Golden Fritter issues $1,000,000 in long term bonds and uses the proceeds to purchase inventory, what will happen to the current ratio?

• A)Increase
• B)Decrease
• C)Stay the same
• D)Change, but more information is required to determine the direction of the change.
• E)None of the above.

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Definitions:

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The importance or impact that a decision has on an individual, organization, or situation.

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External circumstances or pressures that influence an individual's behavior or decision-making processes.

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The qualities, traits, and behaviors that define the individuals within a group and influence the group's dynamics and performance.

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A leadership style focused on setting and achieving challenging goals, excellence, and demonstrating high performance.