Two Companies Have an Identical Amount of Current Assets and Current

question 52

Multiple Choice

Two companies have an identical amount of current assets and current liabilities.Melia Inc.has 40% of its current assets invested in inventory, whereas Tesoro Corp.has 30% of its current assets invested in inventory.Which of the following statements is true?

• A)Melia will have the higher quick ratio.
• B)Melia will have the higher current ratio.
• C)The companies are equally liquid because their current ratios are the same.
• D)Melia is less liquid than Tesoro.

Grasp the concept of adaptive behaviors and how they are essential for survival and reproduction.

Identify the criticisms and challenges associated with studying genetically related individuals, such as twins, in psychological research.

Recognize the historical context and significance of Charles Darwin's work on the theory of evolution.

Appreciate the dynamic and bidirectional relationship between biology and environment as proposed by social cognitive theory.

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Definitions:

New Classical Economists

A group of economists who emphasize the importance of rational expectations and market clearing in explaining economic fluctuations.

Governmental Intervention

Actions taken by a government to influence or regulate various aspects of its economy or society, often to correct market failures or promote social welfare.

Wage and Price Controls

Government-imposed limits on the prices that can be charged for goods and services and/or wages that can be paid, typically in an attempt to control inflation.

Tax Revenue

The funds governments accumulate from tax collection.