If All Else Is Held Equal, an Increase in the Current

question 89

Multiple Choice

If all else is held equal, an increase in the current ratio of a company is generally considered to be an indication that:

• A)current assets have decreased.
• B)current liabilities have increased.
• C)the company will be better able to meet short- term debt obligations.
• D)the company will have increased difficulty meeting short- term obligations.

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Definitions:

Withdraw

To remove funds from an account, or to take back or remove an offer, statement, or participation.

Compounded Annually

Interest calculated on the principal and previously accumulated interest once a year.

Compounded Monthly

Interest on an investment is calculated and added to the principal balance every month.

Annual Contributions

Regular payments made into a retirement account, investment fund, or savings plan on a yearly basis.