Scott Company Had a Current Ratio of 2

question 39

Multiple Choice

Scott Company had a current ratio of 2.57:1 in Year 1 and 2.76:1 in Year 2.This change in current ratio indicates:

• A)the company's debt paying ability has improved.
• B)the company's debt paying ability has weakened.
• C)the company's customers are paying their accounts sooner.
• D)the company is able to sell its inventory faster.

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Definitions:

Automatic System

A mode of thought that is fast, unconscious, and requires minimal cognitive processing, as opposed to controlled, deliberate thought processes.

Cultural Differences

The diversity in beliefs, norms, practices, and values across different societies or groups, often leading to varied human behaviors and interactions.

Communication

The process of transferring information from one entity to another through the use of mutually understood signs, symbols, or language.

Automatic System

The part of the brain that performs tasks without conscious thought, often responsible for habits and immediate reactions.