A Current Ratio of Less Than One Is Not So

question 38

Multiple Choice

A current ratio of less than one is not so much of a concern when the company has a:

• A)low fixed asset turnover ratio.
• B)high days to collect number.
• C)high inventory turnover ratio.
• D)all of the answers are acceptable.

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Definitions:

Partial ANOVA Table

A summary table that shows the results of an ANOVA test, including only a subset of the complete information typically presented.

Slope

A measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Forbes 500 List

An annual ranking by Forbes magazine of the 500 largest U.S. corporations, based on their revenue.

Regression

A statistical method used to determine the relationship between a dependent variable and one or more independent variables, often used for prediction and forecasting.