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.

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Definitions:

Agreeableness

A personality trait characterized by attributes such as trust, altruism, kindness, affection, and other prosocial behaviors.

Social Comparison

The process by which individuals evaluate their own abilities, achievements, and conditions in comparison to others.

Persuasive Arguments

Reasonings or logics presented with the intent to convince or influence others to adopt a certain belief or take specific action.

Risky Shift

A phenomenon in which group decisions tend to be more extreme, including taking greater risks, than individual decisions.