If Current Assets Exceed Current Liabilities, the Payment of Accounts

question 26

Multiple Choice

If current assets exceed current liabilities, the payment of accounts payable will:

• A)decrease the current ratio.
• B)increase the level of cash held.
• C)increase the current ratio.
• D)None of the above

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Definitions:

Utility Function

A representation in economic theory that quantifies the satisfaction a user obtains from consuming various bundles of goods and services.

Flood

An overflow of a large amount of water beyond its normal limits, especially over what is normally dry land.

Insurance

A financial product designed to protect against the risk of financial losses, both big and small, that result from damage to the insured or property, or liability for damage or injury caused to a third party.

Wealth

The abundance of valuable resources, assets, or material possessions an individual or entity controls.