Holding All Other Variables Constant, Which of the Following Could

question 2

Multiple Choice

Holding all other variables constant, which of the following could cause a firm's current ratio to decrease from 3.0 to 2.5? An increase in [blank].

• A)inventory
• B)long-term debt
• C)accounts receivable
• D)accounts payable

---

Definitions:

Dispositional Explanation

An attribution that ascribes behavior to innate qualities of the individual, such as personality traits or temperaments, rather than to external circumstances.

Situational Explanation

The interpretation of behavior or events based on the context or circumstances in which they occur, rather than attributing them to personal traits.

Situational Explanation

An explanation that attributes behavior to external factors, circumstances, or situations rather than to individual characteristics.

Dispositional Explanation

An attribution that attributes someone's behavior to their inherent qualities, characteristics, or personality, rather than external situations.