Other Things Being Equal, Most Managers Would Prefer to Report

question 136

Multiple Choice

Other things being equal, most managers would prefer to report liabilities as noncurrent rather than current. The logic behind this preference is that the long-term classification permits the company to report:

• A) Higher working capital and a higher inventory turnover.
• B) Lower working capital and a higher current ratio.
• C) Higher working capital and a higher current ratio.
• D) Higher working capital and a lower debt to equity ratio.

---

Definitions:

Loud Noise

A disruptive or disturbing sound of high intensity, often causing potential harm to hearing or inducing stress.

Conditioned Stimulus

A neutral stimulus that, upon being associated with an unconditioned stimulus, starts to induce a conditioned response.

Punishment

The imposition of a penalty or discomfort by an authority figure or system in response to an undesired behavior, aiming to decrease its occurrence.

Positive Reinforcement

A strategy in behavior modification that involves the addition of a rewarding stimulus following a desired behavior.