Below Are Several People and Their Current Ratios

question 52

Multiple Choice

Below are several people and their current ratios.If they were to lose their jobs today,which one would probably experience financial stress and pressures the quickest?

• A)Elmo has a current ratio of 0.5 times.
• B)Andy has a current ratio of 2.1 times.
• C)Dee has a current ratio of 1 time.
• D)There is not enough information to answer this question.

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Definitions:

Bad Debts Expense

The portion of receivables that a company does not expect to collect and writes off as a loss.

Gross Accounts Receivable

The total amount owed to a company by its customers for goods or services sold on credit before any deductions for returns or allowances.

Aging of Accounts Receivable

The process of categorizing accounts receivable according to the length of time an invoice has been outstanding.

Age Group

A classification of people based on their age, often used in demographics and marketing.