An Increase in the Current Asset to Total Asset Ratio

question 171

Multiple Choice

An increase in the current asset to total asset ratio will result in ________.

• A) an increase in profit
• B) an increase in risk
• C) a decrease in risk
• D) a decrease in profit

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Definitions:

Circular 230

Regulations promulgated by the United States Department of the Treasury governing practice before the Internal Revenue Service by attorneys, CPAs, and other professionals.

Regressive Tax

A tax rate that decreases as the taxable amount increases, placing a higher burden on lower-income earners.

Appellate Courts

Courts responsible for hearing appeals against legal decisions made by lower courts, reviewing cases for errors in application of the law.

Trial Courts

Courts of original jurisdiction where cases are tried, evidence is presented, and judgments are made, subject to appeal.