A Firm's Current Ratio Changed from 1

question 62

True/False

A firm's current ratio changed from 1.4 times in the previous year to 1.6 times in the current year. Based on this information, we can conclude that the firm's liquidity has improved.

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Definitions:

Aggregate Production

The total output of goods and services produced by an economy over a specified period.

Aggregate Production

The total output of goods and services produced by an economy over a given period.

Aggregate Purchases

The total amount spent on goods and services within an economy at a given period of time.

Unintended Inventory Investment

Occurs when a business accumulates inventory beyond its planned level, often due to lower than expected sales.