A Corporation Wants to Increase Its Current Ratio from Its

question 24

Multiple Choice

A Corporation wants to increase its current ratio from its present level of 1.2 before it ends the fiscal year. The action having the desired effect is:

• A) delaying the next payroll.
• B) writing down impaired assets.
• C) selling furniture for cash.
• D) selling current marketable securities at cash for their book value.

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Definitions:

Defense Mechanism

Psychological strategies brought into play by individuals or the ego to protect against anxiety arising from unacceptable thoughts or feelings.

Subconsciously Attributes

Subconsciously attributes refer to qualities or features that are assigned or associated with something without conscious awareness.

Association Techniques

Techniques in which respondents are presented with visual or auditory stimuli and asked to respond with the first association that comes to mind.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.