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:

Social Audit

A formal evaluation of an organization's impact on society, measuring it against certain ethical, social, or environmental standards.

Social Responsibility Programs

Corporate initiatives focused on improving societal well-being, including environmental, social, and economic aspects.

Organizational Objectives

Specific goals that a business or organization aims to achieve, guiding its internal decision-making processes.

Social Expectations

Refer to the societal norms and values that influence an individual's behavior and decision-making in a community.