If a Company Has a Current Ratio of 0

question 105

Multiple Choice

If a company has a current ratio of 0.9,in order to improve its current ratio it might:

• A) increase its current assets by decreasing its inventory.
• B) use more long-term debt to decrease current liabilities.
• C) decrease its large amounts of accounts receivable.
• D) decrease its large amount of accounts to pay to increase its current liabilities.

Explain the process and implications of labeling in deviance.

Gain insight into the use of phenomenology and ethnography in studying deviance.

Distinguish between primary and secondary deviance and their stages in the labeling process.

Understand the concept and theories related to deviance and social control.

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point; measures the risk of not covering fixed costs.

Liabilities to Stockholders' Equity

A ratio that measures the amount of liabilities a company has compared to its shareholders' equity.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue; it is calculated by dividing net sales by average total assets.

Long-term Investments

Investments made with the intention to hold for more than one year, typically in bonds, stocks, or real estate, aiming for long-term capital growth.