If the only information you are given about Ryan Corporation, a large public company in business for many years, is that it has a current ratio of 2.9, what could you infer from this?

A) It can meet the short-term obligations without any difficulty.
B) You could determine that Ryan has a liquidity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.
C) Nothing, you would also need the current ratio's from the last few years of the S&P 500 Index.
D) You could determine that Ryan has an activity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.


A

Business

You might also like to view...

Newsweek, New York Times, and Journal of the American Medical Association are examples of this type of source

A) reference materials B) library databases C) books D) periodicals

Business

Value-added selling can be defined as a series of creative improvements within the sales process that enhance the customer experience

Indicate whether the statement is true or false

Business

Primary research relies on firsthand data, such as responses from pertinent individuals or observations of people or phenomena related to your study

Indicate whether the statement is true or false

Business

Under the Superfund legislation, who may be held liable for the clean up costs of a hazardous

waste site? A) Only the transporter of the waste and owner of the land at the time of disposal B) The generator, the transporter, the owner of the land at the time of disposal, and the current owner C) Only the generator of the waste D) Only the generator and the transporter E) Only the generator, transporter, and owner of the land at the time the time of the waste disposal

Business