Other Things Being Equal, Most Managers Would Prefer to Report

question 136

Multiple Choice

Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long-term classification permits the company to report:

• A) Higher working capital and a higher inventory turnover.
• B) Lower working capital and a higher current ratio.
• C) Higher working capital and a higher current ratio.
• D) Higher working capital and a lower debt to equity ratio.

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Definitions:

Stomach Enzyme

Proteins found in the stomach that are crucial for the digestion of food, breaking down complex molecules like proteins into simpler forms.

Morphine Derivatives

Compounds chemically related to morphine, often used for their analgesic (pain-relieving) properties.

Amphetamines

Drugs that stimulate neural activity, causing speeded-up body functions and associated energy and mood changes.

Barbiturates

Drugs that depress the activity of the central nervous system, reducing anxiety but impairing memory and judgment.