Which of the Following Situations Will Improve the Current Ratio

question 90

Multiple Choice

Which of the following situations will improve the current ratio if it is initially less than 1.0?

• A) Using cash to repay accounts payable
• B) Purchasing inventory on credit terms
• C) Selling finished goods inventory on credit
• D) Purchasing marketable securities for cash

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Definitions:

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, referring to the realization of a person's potential, self-fulfillment, seeking personal growth and peak experiences.

Esteem Needs

A concept in psychology that refers to the human desire for respect, self-esteem, and recognition from others, being part of Maslow's hierarchy of needs.

Extrinsic Rewards

Incentives provided by external sources, such as money, promotions, or recognition, that motivate individuals to perform certain behaviors or achieve goals.

Lower-Order Needs

refer to basic human requirements such as safety, physiological needs, and security, primarily described in Maslow's hierarchy of needs.