Walter Industries' Current Ratio Is 0

question 57

Multiple Choice

Walter Industries' current ratio is 0.5.Considered alone,which of the following actions would increase the company's current ratio?

• A) Borrow using short-term notes payable and use the cash to increase inventories.
• B) Use cash to reduce accruals.
• C) Use cash to reduce accounts payable.
• D) Use cash to reduce short-term notes payable.
• E) Use cash to reduce long-term bonds outstanding.

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Definitions:

Lives in a Car

A situation where an individual or family resides in a vehicle, often due to homelessness or lack of access to traditional housing.

Family as System

A concept in which a family is viewed as an interconnected and interdependent unit, where each member affects and is affected by the others.

Extended Family

A family group that extends beyond the nuclear family to include grandparents, aunts, uncles, and other relatives.

Nuclear

Pertaining to the nucleus of an atom or to energy produced by the alteration of atomic nuclei.