How Can a Company Improve Its Current Ratio

question 141

Multiple Choice

How can a company improve its current ratio?

• A) Work with a creditor to reclassify some current debt into long-term debt
• B) Use cash to reduce current liabilities
• C) Nothing can ethically be done to improve the current ratio
• D) Use excess cash to buy new equipment

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Definitions:

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Worldwide Recession

A period of global economic downturn characterized by reduced industrial activity, unemployment, and decreased spending and investment.

Barack Obama

He served as the 44th President of the United States from 2009 to 2017, and is noted for being the first African American to hold the office.

Popular Abroad

A term used to describe something, such as a concept, product, or cultural phenomenon, that enjoys widespread popularity or recognition outside its country of origin.