If the Current Ratio Is 2,what Will Be the Effect

question 25

Multiple Choice

If the current ratio is 2,what will be the effect of the payment of a cash dividend,which was recorded as a liability on the date of declaration?

• A)An increase in the current ratio.
• B)A decrease in the current ratio.
• C)No effect on the current ratio.
• D)A decrease in the cash coverage ratio.

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Definitions:

Afferent Fibers

Nerve fibers that carry sensory information from the body's periphery towards the central nervous system.

Ganglion Cell

A type of neuron located in the retina that receives visual information from photoreceptors and transmits it to the brain.

Somatosensory System

This system is part of the sensory nervous system, responsible for processing sensory information from the body, including touch, temperature, pain, and body position.

Anterior Cingulate Cortex

A part of the brain located in the frontal lobe, involved in processing emotions, decision making, and impulse control, among other functions.