If a Firm Failed to Classify the Portion of Long-Term

question 66

Multiple Choice

If a firm failed to classify the portion of long-term debt that is due within one year as a current liability,which of the following ratios would not be overstated?

• A)quick ratio
• B)current ratio
• C)debt to equity ratio
• D)current-debt-to-cash ratio

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Definitions:

First Continental Congress

A meeting in 1774 of delegates from twelve of the thirteen American colonies to address grievances against British policies and to organize colonial resistance.

Coercive Acts

A series of four acts passed by the British Parliament in 1774 to punish Massachusetts colonists for the Boston Tea Party, leading to greater unity among the American colonies against Britain.

Independence

The state of being free from external control and constraint, often referring to a nation's sovereignty and the right to self-governance.

Battle of Bunker Hill

An early and significant battle during the American Revolutionary War on June 17, 1775, showcasing the determination and resilience of the American forces.