Excursion Corp

question 118

Multiple Choice

Excursion Corp.increased its dollar amount of working capital over the past several years.To further evaluate the company's short-run liquidity,which one of the following measures should be used?

• A)The current ratio
• B)An analysis of the company's long-term debt
• C)An analysis of the return on stockholders' equity
• D)An analysis of retained earnings

---

Definitions:

Impairment Of Collateral

A decrease in the value or usability of property or assets that have been pledged as security for a loan, potentially affecting the secured party's interest.

Discharge

The completion, termination, or fulfillment of a legal obligation, duty, or contract.

Negotiable Instrument

A written promise or order to pay a specific sum of money that is transferable from one person to another.

Reacquisition

The process of buying back or otherwise regaining possession of something previously sold, lost, or given away.