The Current Ratio for Joshua Wines Is 2

question 9

Multiple Choice

The current ratio for Joshua Wines is 2.2 and the acid test ratio for the business is 0.7. These ratios suggest that the company

• A) Is carrying too much inventory
• B) Is carrying too many current liabilities
• C) Has sufficient liquidity to meet a long-term financial commitments
• D) Has sufficient liquidity to meet short-term financial commitments
• E) Has too much investment in Accounts Receivables

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Definitions:

Employee Theft

The act of stealing assets, money, or proprietary information from one's employer or workplace.

Corporate Headquarters

The main office or central hub of a corporation where key managerial and executive activities occur, often seen as the symbolic and functional center of the company.

Board of Directors

A group of individuals elected by shareholders to oversee the activities and direction of a company.

Campaign Contributions

Financial donations given to political candidates, parties, or campaigns to support their activities and efforts towards election.