Assume the Current Ratio Is 2 to 1

question 170

Multiple Choice

Assume the current ratio is 2 to 1.Payment on accrued salaries payable would cause the current ratio to

• A)increase.
• B)decrease.
• C)be unchanged since the effects offset one another.
• D)be unchanged since it has no impact on any current accounts.

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Definitions:

Relative Risk

A measure used in epidemiological research to compare the risk of a certain event occurring in two different groups.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter.

Large-Sample Method

Statistical methods that rely on the theory of large numbers, allowing for approximation techniques when the sample size is sufficiently large.

Confidence Interval

A statistical range, based on sample data, within which a population parameter is estimated to lie with a certain level of confidence.