Which of the Following Actions Would Improve a Current Ratio

question 133

Multiple Choice

Which of the following actions would improve a current ratio of 0.8?

• A) Use cash to pay off some current liabilities.
• B) Purchase additional marketable securities with cash.
• C) Acquire a parcel of land in exchange for common stock.
• D) Purchase additional inventory on credit.

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Definitions:

Actualizing Tendency

A concept in humanistic psychology referring to the innate drive within living organisms to fulfill their potential, including growth, development, and creativity.

Fully Functioning

A state in which an individual operates at their optimum level, experiencing personal growth, fulfillment, and wellness.

Personal Causation Hypothesis

A theory suggesting that individuals perceive their actions as being the result of their own choice and thus feel responsible for the outcomes.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow regarding the concept that human motivation is based on fulfilling a hierarchy of needs, starting from basic physical requirements to more advanced needs of self-actualization.