If a Company with a Current Ratio of 2

question 67

Multiple Choice

If a company with a current ratio of 2.0 pays $2,000 of its salaries payable, then its current ratio will

• A)change, but not enough information is provided to determine if it will increase or decrease.
• B)decrease.
• C)remain the same.
• D)increase.

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Definitions:

Vacation Time

Allocated periods during which an employee is allowed to be away from their work, usually for rest or leisure.

Motivate Action

The process of inspiring or encouraging individuals to take desired actions or behaviors.

Credibility

The quality of being trusted and believed in, crucial for individuals and organizations to convince others of their reliability and integrity.

Competence

The ability to do something successfully or efficiently.