If Current Assets Exceed Current Liabilities, Payments on Current Liabilities

question 125

Multiple Choice

If current assets exceed current liabilities, payments on current liabilities will:

• A) decrease net working capital.
• B) increase net working capital.
• C) decrease the current ratio.
• D) increase the current ratio.

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Definitions:

Slightly Inelastic

Describes demand or supply that is only marginally responsive to changes in price, with the quantity demanded or supplied changing by a smaller percentage than the price change.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Supply

The total amount of a product or service available for purchase at any given price level in a given market.

Market

A system where buyers and sellers interact to trade goods, services, and resources.