From a Liquidity Standpoint It Is More Desirable for a Company

question 26

Multiple Choice

From a liquidity standpoint it is more desirable for a company to have current

• A) assets equal current liabilities.
• B) liabilities exceed current assets.
• C) assets exceed current liabilities.
• D) liabilities exceed long-term liabilities.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Goods

Objects or materials that are produced for sale or exchange in the market, generally physical and tangible in nature.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against them.

Rescission

The revocation, cancellation, or repeal of a contract, returning the parties involved to their positions before the contract was made.