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:

Mitochondria

Organelles found in most eukaryotic cells, acting as the site of cellular respiration and energy production through the creation of ATP.

Skeletal Muscle

A type of striated muscle tissue which is attached to bones and is involved in the control of voluntary movements of the body.

Tubular Reabsorption

Involves the movement of water and solutes from the renal tubules back into the bloodstream, a vital process for maintaining fluid and electrolyte balance in the body.

Plasma Proteins

Proteins found in blood plasma, including albumin, globulins, and fibrinogen, that perform various functions such as clotting and defense against infections.