Which of the Following Activities Will Increase a Firm's Current

question 27

Multiple Choice

Which of the following activities will increase a firm's current ratio?

• A) sale of inventory for a profit
• B) buy equipment with a long-term bank loan
• C) pay the current month's rent

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Definitions:

Utility Function

A mathematical representation that ranks preferences or satisfaction levels consumers derive from different bundles of goods.

Perfect Substitutes

Products or goods that can replace each other perfectly with no loss of utility to the consumer.

Utility Function

A mathematical representation of a consumer's preference ranking over a set of goods or services, indicating satisfaction levels.

Units Of X

A generic term for measuring quantities of a variable or unspecified item, labeled as 'X'.