If a Firm's Current Ratio Is 1

question 33

Multiple Choice

If a firm's current ratio is 1.5, then ____.

• A) its current liabilities exceed its current assets
• B) it is possible for its quick ratio to be 2.0
• C) it is possible for its quick ratio to be 1.0
• D) its current assets equal its current liabilities

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Definitions:

Aggregate Demand

The gross requirement for products and services within an economy, priced at an overall level over a certain timeframe.

AD4 to AD5

No specific universally recognized definition; possibly refers to a shift or movement from one aggregate demand curve (AD4) to another (AD5) in economics.

Equilibrium GDP

is the level of Gross Domestic Product where aggregate supply equals aggregate demand in an economy.

Aggregate Supply Curve

The relationship between the total quantity of goods and services that firms are willing to produce and sell at different price levels in an economy.