Your department's Asset/Liability Ratio is 0.87. You belong to a community nursing administrators' group where you learn that the mean, or average, Asset/Liability Ratios for all departments like yours is 2.27. What are the implications of this comparative data?
A) You should dismiss this data because all departments are different, and you have to accept this fact without further exploration
B) You should view this data as an indication that your department has more liquidity and better financial health than others
C) You should further explore this data and determine what things you can do in order to decrease your Asset/Liability Ratio
D) You should further explore this data and determine what things you can do in order to increase your Asset/Liability Ratio
Correct Answer:
Verified
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