An Increase in Current Liabilities Will Have Which One of the Following

question 80

Multiple Choice

An increase in current liabilities will have which one of the following effects,all else held constant? Assume all ratios have positive values.

• A)increase in the cash ratio
• B)increase in the net working capital to total assets ratio
• C)decrease in the quick ratio
• D)decrease in the cash coverage ratio
• E)increase in the current ratio

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Definitions:

Distribution of Output

The way in which the total goods and services produced by an economy are allocated or distributed among its population.

Interest Income

The earnings received from investments in vehicles such as savings accounts, certificates of deposit, or bonds, typically presented as a percentage of the investment's total value.

Quantitative Measures

Numeric indicators or metrics used to evaluate, compare, and track performance or outcomes.

Managerial Success

Achieving organizational goals effectively and efficiently through planning, organizing, leading, and controlling resources.