Assume a Company's Current Ratio Is Less Than One

question 87

Multiple Choice

Assume a company's current ratio is less than one.If the company pays current liabilities with cash,the new current ratio will:

• A) increase
• B) decrease
• C) remain the same
• D) cannot be determined with the information given

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Definitions:

Skewed

Describes data that is not symmetrically distributed, often leaning more heavily towards one side of the scale.

Large Coffee Prices

The cost associated with purchasing larger sizes of coffee beverages from cafes or coffee shops.

Gap

The difference or discrepancy between two points, figures, or elements, often used to identify missing pieces or disparities.

Median

The median is the middle value of a sorted list of numbers, dividing the dataset into two equal halves, where half the numbers are lower and half are higher than the median.