If a Firm Has a Current Ratio of 2, the Subsequent

question 41

True/False

If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease.

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Definitions:

Descriptive Norms

The perception of what behaviors are common or typical within a group, influencing individuals' behavior based on what they perceive others are doing.

Injunctive Norms

Socially accepted beliefs about what behaviors are deemed appropriate or inappropriate in specific contexts.

Focus Theory

A theoretical framework that suggests the focus of attention influences an individual's perception, cognition, and social behavior.

Charismatic Leader

A person who inspires and motivates others through their charm, persuasiveness, and personal appeal.