A Firm's Current Assets Increase from 1

question 11

Multiple Choice

A firm's current assets increase from 1.4 million in 2014 to 1.7 million in 2015.If the firm's current liabilities are unchanged at $1.1 million,and inventory remains unchanged,what is the change in the firm's quick ratio?

• A)increase of 0.28
• B)no change
• C)increase of 0.30
• D)cannot be determined
• E)increase of 1.27

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Definitions:

Dividend Per Share

The amount of dividend a company pays out for each share of its stock, typically expressed on an annual basis.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shareholder's equity remains the same.

Stock Price

The cost of purchasing a share of a company in the stock market; it fluctuates based on supply and demand.

Dividend Income

Earnings distributed to shareholders, usually derived from the company's profits, for holding the company's stock.