A Firm Has a Current Ratio Greater Than 1 A) Option a
B) Option B
C) Option C
D)

question 2

Multiple Choice

A firm has a current ratio greater than 1.0. During the course of the year the firm sells $60M of accounts receivable with limited recourse. If it had not sold the receivables it would have to have taken out a short-term loan. The effect of selling the receivables is: $$\begin{array} { | l | c | c | } \hline & \text { Accounts Receivable Turnover } & \text { Current Ratio } \\\hline \text { A) } & \text { higher } & \text { lower } \\\hline \text { B) } & \text { higher } & \text { higher } \\\hline \text { C) } & \text { lower } & \text { lower } \\\hline \text { D) } & \text { lower } & \text { higher } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Avoiding Type

Refers to a personality or behavioral style that tends to evade facing problems, confrontations, or difficult situations.

Dominant Type

A personality disposition characterized by assertiveness, control, and leadership, often influencing group dynamics and social interactions.

Socially Useful

Socially useful pertains to actions, behaviors, or initiatives that are beneficial to society at large, contributing positively to the well-being and functioning of the community.

Social Interest

A concept introduced by Alfred Adler, referring to an individual's innate potential to cooperate with others for societal betterment.