Your fiRm's Banker Is Getting Nervous About Your Liquidity

question 163

Multiple Choice

Your firm's banker is getting nervous about your liquidity. Which of the following actions would increase the firm's current ratio (which is presently 0.6) and ease the bank's concern?

• A) Sell 30-year bonds to purchase fixed assets.
• B) Allow preferred shareholders to convert their holdings into common stock.
• C) A cash sale of inventory at cost.
• D) Sell long-term bonds owned by the firm and purchase marketable securities.
• E) File for bankruptcy.

---

Definitions:

Anagram Puzzles

Word puzzles consisting of letters that can be rearranged to form a different word or phrase.

Time Progression

The sequential advancement or development over different periods, often used to observe changes or trends in studies.

Carryover Effect

A phenomenon where the effect of a previous condition or treatment persists and influences outcomes in subsequent conditions or treatments.

Drug Administration

The method by which a drug is taken into the body, including various routes such as oral, intravenous, intramuscular, or topical.