If a Company's Current Ratio Increases from 1

question 6

Multiple Choice

If a company's current ratio increases from 1.1 to 1.3 from one year to the next, it can be concluded that:

• A) company's liquidity has increased
• B) current assets have increased
• C) current liabilities have decreased
• D) none of the above

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Definitions:

Dissolution of a Partnership

The process of legally ending the relationship between partners and winding up the affairs of a partnership business.

Partnership Termination

The process or action of ending a business partnership, involving the settlement of assets and liabilities among partners.

Withdraw

To remove oneself or one's capital from an account, agreement, or situation.

Employment at Will

An employment arrangement where either the employer or the employee can end the employment relationship at any time, for any reason not prohibited by law.