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

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Definitions:

Acquisition

The process of obtaining control of another company by purchasing its stock, assets, or both.

Interest Earned

Income received from investment assets before taxes such as deposits, savings, and loans investments.

Disposition

The act of selling, donating, discarding, or otherwise disposing of an asset or property.

Comprehensive Income

The total of all operating and non-operating revenues and gains minus all expenses and losses, including those not included in net income.