An Increase in the Current Ratio Would Indicate an Increase

question 34

Multiple Choice

An increase in the current ratio would indicate an increase in

• A) leverage.
• B) liquidity.
• C) return on investment.
• D) operating income.

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Definitions:

Financial Prospects

Future financial opportunities or potential for earnings, investments, and economic growth for an individual or entity.

Youthfulness

The characteristics, qualities, or appearance traditionally associated with young people.

Slightly Sarcastic

Describes a tone or manner of speaking that involves mild, playful sarcasm intended to amuse or tease without causing harm.

Commutation

The action of substituting one thing for another or the process of changing a penalty to a less severe one.