Wilker Industries Has a Current Ratio of 1

question 97

Multiple Choice

Wilker Industries has a current ratio of 1.8.If Wilker collects a payment from a customer on account, what is expected to happen to the company's current ratio?

• A)It will increase.
• B)It will decrease.
• C)It will stay the same.
• D)The effect is based on the amount of debt a company holds at the end of the period.

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Definitions:

Outer Core

The liquid layer of the Earth's core that lies beneath the mantle and surrounds the inner core, composed mostly of iron and nickel.

Subduction Zone

A region where one tectonic plate slides underneath another, often leading to volcanic activity and earthquakes.

Volcanoes

Openings in the Earth's crust through which molten rock, ash, and gases are ejected.

Plate Tectonics

A scientific theory explaining the movement of the Earth's lithosphere, which is divided into tectonic plates, over the more fluid asthenosphere.