If Current Assets Exceed Current Liabilities, Payments on Current Liabilities

question 125

Multiple Choice

If current assets exceed current liabilities, payments on current liabilities will:

• A) decrease net working capital.
• B) increase net working capital.
• C) decrease the current ratio.
• D) increase the current ratio.

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Definitions:

Authority

The legal power or right given to an individual or entity to make decisions, and enforce obedience.

Agents

Persons authorized to act on behalf of another, known as the principal, in legal or business matters.

Succession Planning

The strategy for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.

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The process of setting career objectives and determining the steps and actions to achieve them.