A Company with a Current Ratio of 2

question 140

Multiple Choice

A company with a current ratio of 2.4 times will see that ratio decrease when the company

• A)pays a large current liability.
• B)declares a 10 percent stock dividend on its common stock.
• C)borrows cash by issuing a short-term note payable.
• D)converts a short-term liability to a long-term liability.

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Definitions:

Nation's Exports

The goods and services produced in one country and sold to buyers in another country.

Imports

Goods or services brought into one country from another for sale or exchange.

Exchange Rate

The value of one currency for the purpose of conversion to another, impacting trade and economics globally.

Transactions

The action of conducting business or trading between parties, typically involving the exchange of goods, services, money, or information.