How Can a Company Improve Its Current Ratio

question 61

Multiple Choice

How can a company improve its current ratio?

• A)Work with a creditor to reclassify some current debt into long-term debt
• B)Collect accounts receivable
• C)Nothing can ethically be done to improve the current ratio
• D)Use excess cash to buy new equipment

Recognize the importance of efficiency in utilizing assets to generate revenue.

Understand the calculation and implications of working capital.

Identify the various stakeholders and their interests in financial statement analysis.

Assess the impact of inventory management on a company's investment needs.

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Definitions:

Correlation

A measure of how strongly two variables are related to each other.

Causation

The action of causing something, in research it generally refers to the relationship between variables where one variable directly affects another.

Theoretical Perspective

A basic set of assumptions that guides research and theory in social sciences, providing a specific viewpoint or lens for interpretation.

Research Topic

A specific subject or area of investigation selected for detailed study, often forming the basis of a research project or paper.