A Company's Current Ratio Is Decreasing Every Year and Currently

question 141

Multiple Choice

A company's current ratio is decreasing every year and currently stands at 1.00.This indicates:

• A)an improving financial position.
• B)an improving liquidity position.
• C)a declining ability to pay current liabilities.
• D)an increase in profitability.

---

Definitions:

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.

Charter

A formal document granting rights, privileges, or authority, often used to establish and outline the operations of organizations, corporations, and cities.

Core Values Statement

A declaration that outlines the essential beliefs and guiding principles of an organization.

Business Plan

A detailed document outlining the objectives, strategies, financial projections, and operational guidelines for a new or existing business.