Which of the Following Activities Will Increase a Firm's Current

question 48

Multiple Choice

Which of the following activities will increase a firm's current ratio?

• A) purchase inventory using cash
• B) buy equipment with a short-term bank loan
• C) accrued wages and taxes increase
• D) none of these statements will increase a firm's current ratio

---

Definitions:

Product Inventory

The total amount of goods that a company holds in stock at a given time, encompassing raw materials, work-in-progress, and finished goods.

Foreign Competition

Competition that domestic companies face from abroad, from companies in other countries offering similar goods or services.

Union Membership

The status of being a member of a labor union, an organization aimed at representing the interests of employees in negotiations with employers.

Government Employees

Individuals who work in various departments and agencies of the government and are paid by the government.