Holding All Other Variables Constant, Which of the Following Could

question 89

Multiple Choice

Holding all other variables constant, which of the following could cause a firm's current ratio to decrease from 3.0 to 2.5? An increase in

• A) inventory
• B) long-term debt
• C) accounts receivable
• D) accounts payable

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Definitions:

Effectiveness

The degree to which something achieves a desired or intended result or outcome.

Punishment

A consequence applied with the intent of reducing the occurrence of an undesirable behavior.

Positive Punishment

Adding an unpleasant stimulus in response to a behavior to decrease the likelihood of that behavior happening in the future.

Negative Punishment

A behavioral modification technique where a desirable stimulus is removed following an unwanted behavior, decreasing the likelihood of that behavior occurring again.