saint leo mgt325 exam 2 latest 2016
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Question
1) A firm has a current ratio of 1; in order to improve its liquidity ratios, this firm might ________.
A. improve its collection practices by providing extended credit policy.
B. decrease current liabilities by utilizing more longminus term debt, thereby increasing the current and quick ratios.
C. increase inventory, thereby increasing current assets and the current and quick ratios.
D. improve its collection practices and pay accounts payable, thereby decreasing current liabilities a...
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saint leo mgt325 exam 2 latest 2016•saint leo mgt325 exam 2 latest 2016
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Question
1) A firm has a current ratio of 1; in order to improve its liquidity ratios, this firm might ________.
A. improve its collection practices by providing extended credit policy.
B. decrease current liabilities by utilizing more longminus term debt, thereby increasing the current and quick ratios.
C. increase inventory, thereby increasing current assets and the current and quick ratios.
D. improve its collection practices and pay accounts payable, thereby decreasing current liabilities a...