If a Company Has a Current Ratio of 1

question 34

Short Answer

If a company has a current ratio of 1.3:1, what effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio?

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Definitions:

Employee Paychecks

refer to the regular payments made by employers to their employees for the work performed during a specific period.

Decertification Elections

A voting process where workers decide whether to remove the representation of a labor union in their workplace.

Challenges Union

Represents efforts or hurdles that labor unions face, which could include organizing, legal challenges, or opposition from companies and governmental entities.

Strikes

The act of halting work by a group of employees as a form of protest to demand changes from their employer, typically regarding wages, working conditions, or benefits.