A Company's Current Ratio Is Decreasing Every Year and Currently

question 141

Multiple Choice

A company's current ratio is decreasing every year and currently stands at 1.00.This indicates:

• A)an improving financial position.
• B)an improving liquidity position.
• C)a declining ability to pay current liabilities.
• D)an increase in profitability.

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Definitions:

New Middle Class

A socio-economic group that emerged in industrial societies, characterized by higher education levels, professional occupations, and relatively high income.

Physicians

Medical professionals who diagnose, treat, and help prevent diseases and injuries, typically holding a degree in medicine.

Free Black Americans

African Americans who were not enslaved and lived freely in the United States, especially significant before the Civil War in the context of a society divided by slavery.