If All Else Is Held Equal,an Increase in the Current

question 27

Multiple Choice

If all else is held equal,an increase in the current ratio of a company is generally considered to be:

• A) an indication that current assets have decreased
• B) an indication that current liabilities have increased
• C) an indication that the company will have increased difficulty meeting short-term obligations
• D) an indication that the company will be better able to meet short-term debt obligations