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.

---

Definitions:

On Click

An event triggered by pressing and releasing a mouse button (or tapping on a touchscreen) over a user interface element.

Advance

To move forward or make progress, often in the context of technology, knowledge, or stages of a process.

Hyperlinks

A reference or navigation element in electronic documents or web pages that, when clicked or tapped, leads to another section of the document or an entirely different document or website.

Slide Show

A presentation format where a series of images, texts, or videos are displayed in a sequential fashion, often for informational or entertainment purposes.