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Start learning 50% faster. Sign in nowWhen the trend of the current ratio (current assets divided by current liabilities) is increasing, it suggests that the firm's overall liquidity position is improving. On the other hand, when the trend of the acid-test ratio (quick assets divided by current liabilities) is decreasing, it indicates a decline in the firm's ability to meet its short-term obligations without relying on inventory. If the firm is depleting its inventories (option a), it would likely result in a decrease in both the current ratio and the acid-test ratio. Option b, having trouble collecting receivables, would mainly impact the accounts receivable turnover ratio but not necessarily the acid-test ratio. Option c, purchasing too much treasury stock, would not directly impact the liquidity ratios. Therefore, option d, carrying excess inventories, is the most appropriate warning indicated by the given trends. It suggests that the firm may have an inefficient inventory management system or that demand for its products has decreased.
In the word ‘DEVASTATE’ all consonants are written as their preceding letter and all vowels are written as their following letters. Now all letter...
Select the option that is related to the sixth term in the same way as the second term is related to the first term and the fourth term is related to th...
In the given question, select the related letters from the given alternatives.
CHNS : EJMH : : TOPW : VQKD : : URGQ : ?
In a row of bicycles, pink bicycles is 13th from the right end and 31st from the left end. How many total bicycles are there in the row?
If E = 5 and PACKS = 50, then INDUSTRY =
Select the related letters/word/number from the given alternatives:
36 : 216 :: 43 : (?)
Select the option that is related to third cluster in the same way first cluster is related to second cluster.
NAP: 93 :: DEAF: ?
The two given expressions on either side of the ‘=’ sign will have the same value if two terms on either side or on the same side are interchanged....
