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:

Split-Second Fear

A rapid, automatic fear response to a perceived threat, occurring in a fraction of a second.

Unconscious

Pertaining to the part of the mind that is inaccessible to the conscious mind but influences behaviors, thoughts, and feelings.

Neural Processing

The method by which the nervous system receives, interprets, and responds to signals from the sensory organs or other neural inputs.

Automatic Emotional Responses

Immediate and unconscious emotional reactions to certain stimuli or situations without deliberate thought.