If a Company Has a Current Ratio of 2,which of the Following

question 39

Multiple Choice

If a company has a current ratio of 2,which of the following measures will increase the current ratio?

• A) Buying more inventory on short-term credit
• B) Buying more inventory with cash
• C) A customer paying an overdue account
• D) Paying off a short-term bank advance with long-term debt

Analyze the effects of changes in interest rates on borrowing tendencies.

Identify the relationships between supply and demand in currency markets.

Understand the implications of currency appreciation and depreciation on import and export dynamics.

Recognize the factors influencing the demand for a country's currency and its international purchasing power.

---

Definitions:

Litigation File

The collection of documents, evidence, and records related to a legal case or proceeding.

Maintenance

The act of keeping something in good condition through regular care and repairs.

Deposition Transcript

A written record of all spoken words and non-verbal actions during a deposition, as part of pre-trial discovery.

Trial

The formal process in a court of law where the facts of a case are examined, and a judgment is made, typically involving a judge and sometimes a jury.