A Company's Current Ratio Is 0

question 59

Multiple Choice

A company's current ratio is 0.5. Everything else held constant, which of the following actions would increase the company's current ratio?

• A) Borrow using short-term notes payable and use the cash to increase inventories.
• B) Use cash to reduce accruals.
• C) Use cash to reduce accounts payable.
• D) Use cash to reduce short-term notes payable.

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Definitions:

Adrenogenital Hyperplasia

A group of genetic conditions that affect the adrenal glands and can interfere with the body's hormone production, resulting in abnormal genital development and other symptoms.

Genetic Counseling

A communication process that aims to help individuals and families understand and adapt to the medical, psychological, and familial implications of genetic contributions to disease.

Methimazole

A medication used to manage hyperthyroidism by inhibiting the production of thyroid hormones.