Y Co Had a Current Ratio of 4

question 75

Multiple Choice

Y Co had a current ratio of 4.44 in 2011 and 5.84 in 2012.Which of the following would not cause the ratio to increase?

• A)An increase in cash and equivalents and short-term investments.
• B)An increase in current assets that exceeded the increase in current liabilities.
• C)Current assets as a percentage of total assets increased while current liabilities as a percentage of total liabilities and shareholders' equity decreased.
• D)An increase in long-term liabilities.

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Definitions:

India

A country in South Asia, characterized by its diverse culture, languages, and historical significance.

Generation

A group of individuals born and living around the same time, typically considered to span about 20-30 years.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Culture

The behavior patterns, beliefs, and all other products of a group that are passed on from generation to generation.