Jonathan Swift Movers Had the Following Current Ratios 2

question 43

Multiple Choice

Jonathan Swift Movers had the following current ratios 2.2:1; 2.5:1; 2.8:1 for 2017, 2018, 2019 respectively. Which of the following statements most correctly depicts the change in liquidity?

• A)Liquidity is improving from selling office supplies.
• B)Liquidity is improving due to accounts receivable being collected more quickly.
• C)Liquidity is deteriorating due to purchasing equipment.
• D)Liquidity is improving due to cash received in exchange of a long-term note payable.

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Definitions:

Standard Deviation

Standard deviation is a measure of the dispersion or spread of a set of data points relative to its mean, indicating how spread out the data points are.

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the number of values.

Highest Score

The maximum value or score observed in a set of data.

Lowest Score

The smallest or minimal value in a set of data or scores.