Scott Company had a current ratio of 2.76:1 in Year 1 and 2.57:1 in Year 2.This change in current ratio indicates:
A) the company's debt paying ability has improved.
B) the company's debt paying ability has weakened.
C) the company's customers are paying their accounts sooner.
D) the company is able to sell its inventory faster.
Correct Answer:
Verified
Q39: Accounts receivable turnover is calculated by dividing
Q50: If management wishes to know how well
Q65: Which of the following ratios helps evaluate
Q72: Compute the gross profit rate when net
Q74: What is the inventory turnover if the
Q75: The lower the times interest earned ratio,the
Q76: The ratio that measures the productivity of
Q77: Asset management ratios measure:
A) a company's ability
Q78: If current assets are $75,000 and current
Q82: If current assets were $90,000,merchandise inventory was
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents