Monroe Company Has Current Assets, Current Liabilities, and Long-Term Liabilities

question 68

Essay

Monroe Company has current assets, current liabilities, and long-term liabilities of $12,000, $3,000, and $9,000, respectively. Within these amounts, $1,200 is accounts payable, and $1,500 is accounts receivable. What effect will the payment of the accounts payable have on the current ratio? Should Monroe pay the accounts payable on the last day of the year? Explain.

Acknowledge the limitations and appropriate use of specialized language (jargon) in business contexts.

Understand the components and purposes of various business documents.

Analyze the audience to choose the appropriate message strategy (direct or indirect).

Identify formal and informal research methods in business communication.

---

Definitions:

Intelligence Quotient

A numerical measure of a person's cognitive abilities relative to their age group.

Average Performance

A level of performance that falls within the middle range of a distribution or scale, indicating neither exceptional nor poor abilities.

Positron-Emission Tomography

A diagnostic imaging test that uses a radioactive substance to visualize and measure changes in metabolic processes and other physiological activities.

Activity In Brain

Refers to the various physiological and chemical processes that occur within the brain, including neural activity, that underlie thought, emotion, and behavior.