Other Things Being Equal, Most Managers Would Prefer to Report

question 136

Multiple Choice

Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long-term classification permits the company to report:

• A) Higher working capital and a higher inventory turnover.
• B) Lower working capital and a higher current ratio.
• C) Higher working capital and a higher current ratio.
• D) Higher working capital and a lower debt to equity ratio.

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Definitions:

Ethics Officer

A professional responsible for fostering a culture of ethical conduct within an organization, including developing policies, training, and advice on ethics and compliance issues.

Ethics Standards

Guidelines or codes designed to set out acceptable behaviors and help individuals make moral decisions in their personal and professional lives, aiming to uphold integrity and honesty.

Disciplinary Action

A process or measure taken by an organization or authority to address and correct inappropriate behavior or violations of policies or rules.

Values Orientation

The emphasis on core principles and morals that guide behavior within an organization or society, impacting decision-making and priorities.