When the Current Ratio Is ____ Than One and Current

question 6

Multiple Choice

When the current ratio is ____ than one and current liabilities ____ by the same dollar amount as current assets,the current ratio ____.

• A) less;decrease;increases
• B) greater;increase;increases
• C) greater;increase;decreases
• D) less;increase;decreases

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Definitions:

Market Equilibrium

Market equilibrium occurs when the quantity demanded by consumers perfectly matches the quantity supplied by producers, resulting in no excess supply or demand within the market.

Price

The financial value forecasted, demanded, or handed over as compensation for an item.

Quantity

The amount or number of a material or immaterial good that is considered as a unit or an aggregate.

Price Ceiling

A legal maximum price set by government on certain goods or services, intended to prevent prices from becoming too high.