Considered Alone, Which of the Following Would Increase a Company's

question 28

Multiple Choice

Considered alone, which of the following would increase a company's current ratio?

• A) an increase in accounts payable.
• B) an increase in net fixed assets.
• C) an increase in accrued liabilities.
• D) an increase in notes payable.
• E) an increase in accounts receivable.

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Definitions:

Reasonableness

A standard of fairness and rational behavior expected in legal and contractual relationships.

Presumed Innocent

The principle that an individual is considered innocent until proven guilty in a court of law.

Commercial Property

Real estate property that is used for business activities, such as offices, retail spaces, warehouses, and industrial buildings.

Residential Property

Real estate that is used for housing or dwelling purposes.