Which of the Following Would Help a Company Improve Its

question 72

Multiple Choice

Which of the following would help a company improve its quick ratio without necessarily lowering the liability risk to a creditor?

• A) Borrowing money on a long-term note just before the end of the accounting period.
• B) Shifting resources from long-term assets to short-term assets such as supplies and inventory.
• C) Shifting obligations from long-term liabilities to short-term liabilities.
• D) Acquiring inventory by issuing a long-term note.

---

Definitions:

Dispositional

Pertaining to one's inherent qualities of mind and character, often used in psychology to describe a person's natural tendencies or personality traits.

Situational

Relating to or dependent on a particular set of circumstances or context.

Entrapment

A psychological state where an individual feels trapped or unable to escape from a stressful or harmful situation.

Course Of Action

A plan or strategy intended to accomplish a specific goal.