If a Firm's Current Ratio Exceeds 1

question 33

Multiple Choice

If a firm's current ratio exceeds 1.0, what happens as a result of paying cash to reduce accounts payable?

• A)net working capital increases
• B)net working capital decreases
• C)current ratio increases
• D)current ratio decreases

---

Definitions:

Good Deeds

Actions that are carried out with good intentions, often to help others or to make a positive impact.

Chemical Dumping

The illegal or unethical disposal of hazardous chemical substances into the environment, often leading to pollution and health risks.

Call to Action

Call to action refers to a statement or appeal designed to prompt an immediate response or encourage an audience to take a specified action.

Illness

A condition that impairs the normal functioning of an organism, typically manifested by various symptoms.