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:

Social Isolation

The condition of being detached or distanced from others, leading to lack of support networks and feelings of loneliness.

Mental Capacities

The cognitive abilities of an individual, including reasoning, memory, understanding, and problem-solving skills.

Social Interaction

The process through which people communicate, influence, and relate to each other within a society.

Socialization

The process through which individuals learn and acquire the values, norms, and behaviors that are necessary for functioning within their society.