How Can a Company Improve Its Current Ratio

question 141

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) Use cash to reduce current liabilities
• C) Nothing can ethically be done to improve the current ratio
• D) Use excess cash to buy new equipment

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Definitions:

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatterplot.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Engine Size

A measure of the volume of the combustion chambers in a vehicle's engine, typically expressed in liters or cubic centimeters, often linked to the power output.

Gas Mileage

The distance a vehicle can travel per unit volume of fuel, usually measured in miles per gallon (mpg) or kilometers per liter (km/l).