Which of the Following Actions Would Improve a Current Ratio

question 133

Multiple Choice

Which of the following actions would improve a current ratio of 0.8?

• A) Use cash to pay off some current liabilities.
• B) Purchase additional marketable securities with cash.
• C) Acquire a parcel of land in exchange for common stock.
• D) Purchase additional inventory on credit.

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Definitions:

Postindustrial Societies

Societies that are characterized by an economy dominated by the service sector and information technology, rather than industrial manufacturing.

Financial Leverage

The use of borrowed capital (debt) in addition to equity to finance a company's assets, aiming to increase the return on equity.

Critical Decisions

Decisions of significant importance that often influence the direction or success of a particular strategy or organization.

Operations Management

The domain of management tasked with the development and management of production processes and revamping operational methods in the manufacturing of goods or services.