The Miller Company's Current Ratio Is Greater Than 1

question 1

Multiple Choice

The Miller Company's current ratio is greater than 1.0 to 1.By paying off some of its accounts payable using cash,what would be the effect on the company's current ratio?

• A) An increase.
• B) A decrease.
• C) Remain unchanged.
• D) Impossible to determine from the information given.

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Definitions:

Pollution Laws

Legislation that sets limits on the emission of pollutants into the environment, aiming to protect air and water quality.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can influence the market price.

Positive Profits

Financial gains that exceed the costs and expenditures incurred in generating revenue.

Demand Fluctuates

The variability in consumer desire to purchase goods or services over time, often affected by seasons, trends, or economic conditions.