A Company's Current Ratio Is 1

question 81

Multiple Choice

A company's current ratio is 1.5, what is the effect of obtaining land by issuing shares of stock?

• A)increase
• B)decrease
• C)no change
• D)Unable to determine with this limited information.

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Definitions:

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, representing the cost per unit of output.

Total Revenue

The complete sum of funds a company acquires from selling goods or offering services over a specified time period.

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Weekly Total Revenue

The total amount of money earned or received by a company, organization, or individual from all sources within a week.