Walter Industries' Current Ratio Is 0

question 14

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.

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Definitions:

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Borderline Personality Disorder

A mental health disorder characterized by pervasive instability in moods, behavior, self-image, and functioning, leading to impulsive actions and unstable relationships.

Fear of Abandonment

An intense worry or anxiety about being left alone or neglected, often stemming from past experiences or a person's attachment style.

Instability in Relationships

The presence of frequent change, unpredictability, or inconsistency in interpersonal relationships.