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:

Project Management

The discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals within specified parameters.

Engineering

is the application of scientific, mathematical, and empirical principles to innovate, design, develop, maintain, research, and improve structures, machines, devices, systems, and processes.

Forward-Passing

A project management technique used in network analysis to determine the earliest start and finish times for each activity in a project plan.

Scheduling

The process of organizing, planning, and controlling workloads and resources to complete tasks efficiently and within set timeframes.