A Company with a Current Ratio of 2

question 176

Multiple Choice

A company with a current ratio of 2.4 times will see that ratio decrease when the company

• A) converts a short-term liability to a long-term liability.
• B) borrows cash by issuing a short-term note payable.
• C) declares a 10 percent stock dividend on its common stock.
• D) pays a large current liability.

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Definitions:

Alignment

The act of adjusting or arranging elements in a straight line or in correct relative positions; in a social context, it refers to the process of aligning one's behavior or attitudes with those of a group or another individual.

Ideal Self

The representation of the attributes one aspires to have, reflecting personal goals and standards of perfection.

Ought Self

The Ought Self is a component of self-discrepancy theory that represents the attributes a person believes they should possess, often influenced by societal expectations or personal obligations.

Working Self-concept

The subset of an individual's self-knowledge that is brought to mind in a particular context, influencing behavior and self-presentation in that situation.