The Current Assets of KLM Inc

question 13

Multiple Choice

The current assets of KLM Inc. totalled $145,000 while its current liabilities were $200,000. Which of the following best describes KLM's situation?

• A) KLM's cash sales were too low during the current year.
• B) KLM's spending was too high during the current period.
• C) KLM's financial viability is at risk for the current period.
• D) KLM's inventory was too high during the current period.
• E) KLM's accrued wages were too high during the current period.

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Definitions:

Country Club Management

A leadership style that emphasizes the well-being and needs of employees over the productive output of the team or organization.

Middle-Of-The-Road Management

A leadership style that strives to balance task completion with the well-being and needs of team members.

Behavioral

Pertaining to actions or responses of individuals or groups, often studied in psychology and social sciences to understand and influence human conduct.

Trait

A characteristic or quality of an individual, often inherent, that influences their behavior and actions.