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:

Overhead Costs

The ongoing expenses not directly attributed to creating a product or service but necessary for running a business, such as rent, utilities, and administrative salaries.

Budget

An estimate of income and expenditure for a set period of time, often used for planning and managing finances.

Statement Of Needs

A documented expression of the requirements or necessities that a project, proposal, or program aims to address or fulfill.

Grant Proposal

A formal request for financial assistance submitted to an organization or government entity, outlining a project's goals, methodology, and budget.