Which of the Following Actions Could Improve a Firm's Current

question 27

Multiple Choice

Which of the following actions could improve a firm's current ratio if it is now less than 1.0?

• A) Converting marketable securities to cash
• B) Paying accounts payable with cash
• C) Buying inventory on credit
• D) Selling inventory at cost

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Definitions:

Convergent Thinking

A cognitive process in which an individual focuses on finding a single, correct solution to a problem.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often leading to novel conclusions or unique solutions.

Human Brain

Human Brain is the complex organ in humans that is the center of the nervous system, responsible for cognitive functions, emotions, and controlling body activities.

Computer

an electronic device designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results of these operations.