A Firm Has a Current Ratio of 1; in Order

question 190

Multiple Choice

A firm has a current ratio of 1; in order to improve its liquidity ratios, this firm might

• A) improve its collection practices, thereby increasing cash and increasing its current and quick ratios.
• B) improve its collection practices and pay accounts payable, thereby decreasing current liabilities and increasing the current and quick ratios.
• C) decrease current liabilities by utilizing more long-term debt, thereby increasing the current and quick ratios.
• D) increase inventory, thereby increasing current assets and the current and quick ratios.

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Definitions:

Objections to Utilitarianism

Criticisms of the ethical theory that suggests actions are right if they benefit the majority, often focusing on its potential neglect of individual rights and duties.

Great Suffering

A state of intense pain, distress, or hardship, which can be physical, emotional, or psychological in nature.

Many of People

Refers broadly to a large number of individuals in a group or population.