Which of the Following Would Not Be Considered a Sink

question 229

Multiple Choice

Which of the following would not be considered a sink?

• A) Seeds
• B) Fruits
• C) Roots
• D) Nuts
• E) Mature leaves

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Definitions:

Current Ratio

A financial metric used to evaluate a company's ability to pay short-term obligations with its short-term assets.

Current Assets

Short-term resources expected to be converted into cash within one year, including cash, inventory, and accounts receivable.

Current Liabilities

Obligations or debts that a company is expected to pay off within one year or within its normal operating cycle, whichever is longer.

Creditor's Decision

The process through which a creditor analyzes the financial stability and creditworthiness of potential borrowers before lending money.