If You Have Current Assets of $20,000 and Current Liabilities

question 58

Short Answer

If you have current assets of $20,000 and current liabilities of $10,000,then you
(a)have a current liquidity ratio of 2.
(b)are in poor shape with a liquidity ratio of 0.5.
(c)may have trouble paying your bills depending on their due dates.
(d)are overextended by $10,000

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Definitions:

Graduate School

Graduate school is an advanced program of study focused on a particular academic discipline or profession, typically following the completion of an undergraduate degree.

Individualistic Culture

describes a society that values individual rights and independence, emphasizing personal achievements and self-reliance over collective goals.

Collectivistic Culture

Cultures that prioritize the needs and goals of the group over the individual, emphasizing social harmony and interdependence.

Self-esteem

An individual's subjective evaluation of their own worth, including beliefs about oneself, such as feeling competent and valued.