If a Firm Has a Current Ratio of 2, the Subsequent

question 41

True/False

If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease.

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Definitions:

Order Instrument

A financial document that is made payable to a specific individual or entity, requiring endorsement for transfer or payment.

Burden Of Proof

The obligation to prove one's assertion or claim in a legal proceeding.

Responsible Party

The individual or entity legally obligated or held accountable in a particular situation or for a specific act.

Signature Requirement

The need for a person's written mark or signature to authorize documents, contracts, or other formal agreements.