If the Only Information You Were Given About Ryan Corporation

question 61

Multiple Choice

If the only information you were given about Ryan Corporation, a large public company in business for many years, was that had a current ratio of 2.9, what could you determine from this?

• A) Nothing, you would also need Ryan Corporation's current ratios from the last few years and the current ratio's from the last few years of Ryan's competitors.
• B) You could determine that Ryan has a liquidity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.
• C) Nothing, you would also need the current ratio's from the last few years of the S&P 500 Index.
• D) You could determine that Ryan has an activity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.

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Definitions:

Chunking

A memory technique involving grouping individual pieces of information together to improve retention and recall.

Mnemonic Device

A technique used to improve memory by linking new information to familiar concepts or patterns.

Elaborative Rehearsal

A method of memory enhancement which involves thinking about the meaning of the term to be remembered, as opposed to rote repetition.

Persistence

The quality of continuing steadily despite problems, obstacles, or discouragement.