Assuming That the Current Ratio Is Currently 2, Which of the Following

question 37

Multiple Choice

Assuming that the current ratio is currently 2, which of the following actions will increase it?

• A) Purchasing inventory with cash.
• B) Purchasing inventory on short-term credit.
• C) Paying off a short-term bank loan with long-term debt.
• D) A customer paying an overdue bill.

Gain knowledge about the grieving process and its duration.

Identify different caregiving styles and the factors influencing them, including geographic and familial responsibilities.

Describe the characteristics and challenges faced by the frail elderly.

Understand changes in sibling relationships over time and their impact on family dynamics.

---

Definitions:

Return on Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets, indicating the effectiveness of asset use.

Net Income

Net Income is the total earnings of a company after subtracting all expenses, including taxes and costs, from its total revenue, reflecting the company's profitability.

Average Total Assets

An indicator of a company's operational efficiency, calculated as the average of the total assets over a specific period.

Solvency

The ability of an entity to meet its long-term financial obligations and continue operations into the foreseeable future.