If the Only Information You Are Given About Ryan Corporation,a

question 217

Multiple Choice

If the only information you are given about Ryan Corporation,a large public company in business for many years,is that it has a current ratio of 2.9,what could you infer from this?

• A)It can likely meet its short-term obligations without difficulty.
• B)You could determine that Ryan has too much liquidity because the average current ratio among firms in Ryan's industry is 2.0.
• C)Nothing,you would also need the current ratios from the last few years of the S&P 500 Index.
• D)You could determine that Ryan is running a great risk that it will not be able to pay short-term liabilities when they come due.

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Definitions:

Transduction

The process by which sensory stimuli are converted into electrical signals in the nervous system.

Heterotrophic

An organism that obtains its energy and carbon by consuming other organisms, unable to produce its own food.

Autotrophic

Organisms capable of synthesizing their own food from inorganic substances using light or chemical energy.

Parasitic

Pertaining to organisms that live on or in a host organism and cause harm to their host.