Company a Has Current Assets of $42 Billion and Current

question 111

Multiple Choice

Company A has current assets of $42 billion and current liabilities of $31 billion.Company B has current assets of $2.7 billion and current liabilities of $1.8 billion.Which of the following statements is correct,based on this information?

• A)Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
• B)Company A has greater leverage than Company B.
• C)Company A has less leverage than Company B.
• D)Company A and Company B have roughly equivalent enterprise values.

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Definitions:

Cones

In the retina, specific cells called photoreceptors facilitate color vision and are most efficient in conditions of ample light.

Peripheral Areas

Regions or zones that are outside or on the edge of a central area, often implying a distance from a main or core location.

Pigeon Retina

The pigeon retina is a specific study subject in vision science, exploring how these birds perceive light and color, contributing to our understanding of avian vision and comparative physiology.

Cones

Specialized photoreceptor cells in the retina of the eye that are responsible for color vision.