Assuming That the Current Ratio Is Currently 2, Which of the Following

question 37

Multiple Choice

Assuming that the current ratio is currently 2, which of the following actions will increase it?

• A) Purchasing inventory with cash.
• B) Purchasing inventory on short-term credit.
• C) Paying off a short-term bank loan with long-term debt.
• D) A customer paying an overdue bill.

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Definitions:

Critical Incidents

Significant events or situations that have a profound impact, often used in the analysis of organizational operations or human behavior.

Technically Feasible

Refers to a project or proposal that is possible to implement or achieve with the existing technological resources and knowledge.

Economically

Pertaining to the efficient and prudent management or use of resources, often with the objective of saving or minimizing costs.

Failure Causes

The reasons or factors that lead to the unsuccessful outcome of a process, project, or operation.