Doran Corp

question 32

Multiple Choice

Doran Corp.has a current ratio of 6.Under which of the following scenarios might this indicate a problem?

• A) inventories are increasing due to the introduction of a new product
• B) the company is holding cash in expectation of making a large investment in equipment
• C) receivables are increasing due to increasing sales
• D) inventories are increasing and the industry in which Doran Corp.operates is experiencing a recession

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Definitions:

Closed-ended Question

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