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:

On Time

Refers to the condition or state of being operational or active at the expected or scheduled time.

Off Time

Represents the period when a system or component is not operating or is inactive.

PLCs

Abbreviation for Programmable Logic Controllers, specialized computers used to control industrial machines and processes.

Linear

Describes a relationship or process that proceeds in a straight line or in a direct, proportional manner without deviation.