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.

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Definitions:

Housewife

A term traditionally used for a woman who manages the household's daily operations and is not employed outside the home.

Labor Force

The total number of people who are currently employed or actively seeking employment within an economy.

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Nations that are members of the Organization of the Petroleum Exporting Countries, known for coordinating oil production policies.

Oil Price

The cost per barrel of crude oil, influenced by factors like geopolitical events, supply and demand dynamics, and market speculation.