Which One of the Following Does NOT Change a Company's

question 47

Multiple Choice

Which one of the following does NOT change a company's current ratio?

• A) The company collects on its accounts receivables.
• B) The company purchases inventory by taking a short-term loan.
• C) The company pays down its accounts payables.
• D) None of the above.

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Definitions:

Marginal Product

The additional output derived from the use of one more unit of a production input, while holding other inputs constant.

Technologically Efficient

A state of production where it is not possible to increase the production of one good without decreasing the production of another, given current technology.

Autos Assembled

The total count or volume of automobiles manufactured and put together in a production process within a specific time frame.

Robots

Machines or automated systems capable of carrying out a series of actions automatically, either through programming or via artificial intelligence.