Which of the Following Would Improve a Current Ratio That

question 42

Multiple Choice

Which of the following would improve a current ratio that is now 1.2?

• A)Selling long-term assets for cash.
• B)Purchasing land for cash.
• C)Buying equipment in exchange for a two-year note.
• D)Purchasing inventory on account.

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Definitions:

Yield

The income return on an investment, typically expressed as an annual percentage, including dividend payments for stocks and interest payments for bonds.

Real Rate

The rate of interest an investor expects to receive after allowing for inflation.

Term Structure

A representation of how the yield of fixed-income securities varies with different terms or maturity periods.

Yield To Maturity

Yield to maturity is the total return anticipated on a bond if the bond is held until the end of its lifetime.