All Else Being Equal, Which of the Following Will Decrease

question 21

Multiple Choice

All else being equal, which of the following will decrease a firm's current ratio?

• A) A decrease in the net fixed assets
• B) A decrease in depreciation expense
• C) An increase in accounts payable
• D) None of the above

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Definitions:

Political Factor

Political factors are elements related to government actions and policies that can affect a business's operations and profitability, such as laws, regulations, and political stability.

Competitive Landscape

The dynamic market environment in which businesses compete, including factors such as competitors, customers, and market trends.

PEST Analysis

An analytical framework for assessing external macro-environmental factors influencing an organization, including Political, Economic, Social, and Technological aspects.

Competitive Landscape

The analysis of how businesses compete within a particular sector, including strategies, strengths, weaknesses, and market positions.