Assume the Current Ratio Is 2 to 1

question 170

Multiple Choice

Assume the current ratio is 2 to 1.Payment on accrued salaries payable would cause the current ratio to

• A)increase.
• B)decrease.
• C)be unchanged since the effects offset one another.
• D)be unchanged since it has no impact on any current accounts.

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Definitions:

Positive Inequity

A situation in social psychology where an individual perceives that they are receiving more than they believe they deserve compared to others, impacting motivation and satisfaction.

Negative Inequality

Refers to situations where resources or benefits are distributed among individuals or groups in a way that is perceived as unfairly disadvantageous.

Company

An organization engaged in commercial, industrial, or professional activities.

Basic Causes

Fundamental reasons or root factors that lead to a particular outcome or condition, often underlying more immediate or apparent causes.