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

question 212

Multiple Choice

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

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

---

Definitions:

Principal

In a legal context, the principal is the party who grants authority to an agent to act on their behalf in legal or financial matters.

Apparent Authority

A situation where someone appears to have the power to act on behalf of another (such as an employer), even if they do not have actual authority.

Ratify

To formally approve or confirm an agreement or act, making it officially valid.

Breach

The failure to perform obligations as stipulated in a contract, leading to potential legal consequences.