Look Good Corporation Has Current Assets of $1

question 15

Multiple Choice

Look Good Corporation has current assets of $1.1M and current liabilities of $1M. It is close to year-end and it would like to increase its current ratio. Which of the following will achieve this?

• A) Encourage customers to pay their bills more quickly.
• B) Increase short-term borrowings by $0.1M.
• C) Sold building for $0.2M in cash.
• D) Liquidate some of its trading marketable securities.

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Definitions:

Reduce Waste

The initiative to minimize the amount of waste generated by consuming less, recycling, and employing sustainable practices to protect the environment.

Aquifer

An underground layer of water-bearing permeable rock or unconsolidated materials from which groundwater can be extracted using a water well.

Precipitation

Any variant of water, solid or liquid, that drops from the atmosphere and makes contact with the Earth, including forms like rain, snow, sleet, and hail.

Diagram

A simplified drawing showing the appearance, structure, or workings of something, often used in educational and technical contexts.