For the Most Recent Year, a Company's Current Ratio Was

question 12

Multiple Choice

For the most recent year, a company's current ratio was significantly lower than its industry average. What is the best possible explanation for this situation?

• A)The company's competitors were profitable.
• B)The company's liquidity has improved.
• C)The company has less equity than the rest of the industry.
• D)The company's liquidity is worse than the rest of the industry.

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Definitions:

Ora Serrata

The ora serrata is the serrated junction between the retina and the ciliary body in the eye.

Optic Disc

The point on the retina at which the optic nerve fibers exit the eye, creating a natural blind spot as there are no photoreceptor cells in this area.

Macula Lutea

A small, yellowish central area of the retina that is rich in cones and mediates clear, detailed vision.

Anterior Cavity

A body cavity that includes the thoracic, abdominal, and pelvic cavities; it houses and protects the body's internal organs.