You Observe That a Company's Current Ratio Has Increased Significantly

question 16

Multiple Choice

You observe that a company's current ratio has increased significantly.This could indicate that:

• A)contingent liabilities are not recorded.
• B)accounts payable is understated.
• C)expenses are inappropriately capitalized as assets.
• D)fixed assets are overstated.

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Definitions:

Post-Traumatic Stress Disorder

Post-Traumatic Stress Disorder is a mental health condition triggered by experiencing or witnessing a terrifying event, leading to symptoms such as flashbacks, nightmares, and severe anxiety.

General Paresis

A neuropsychiatric disorder affecting the brain and central nervous system, caused by untreated syphilis infection, leading to progressive dementia and paralysis.

Dissociative Fugue

A state in which someone leaves home, then, days or months later, suddenly realizes he is in a strange place and doesn’t know how he got there; often understood as a means of coping with (and escaping from) extremely painful events.

Mood Disorder

A psychological disorder characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.