A Company with a Current Ratio of 2

question 140

Multiple Choice

A company with a current ratio of 2.4 times will see that ratio decrease when the company

• A)pays a large current liability.
• B)declares a 10 percent stock dividend on its common stock.
• C)borrows cash by issuing a short-term note payable.
• D)converts a short-term liability to a long-term liability.

---

Definitions:

Experimental

Pertaining to a research methodology that involves manipulating one variable to determine if changes in one variable cause changes in another variable, within a controlled environment.

Humanistic Psychology

A psychological perspective emphasizing the study of the whole person and the uniqueness of each individual's experience.

Existential

Pertains to or deals with the philosophical concept of existence, especially human existence and its inherent meaning, or lack thereof.

Psychoanalytic

Referring to a theory and therapeutic approach in psychology that emphasizes the role of unconscious factors in behavior and personality development.