An increase in the current ratio over time is always a good indication of increased liquidity of the firm.
Correct Answer:
Verified
Q43: When examining the current ratio and trends
Q61: A decrease in provision for doubtful accounts
Q64: The higher the company's inventory turnover the
Q65: If a company's days receivables outstanding increases,
Q66: Management Discussion and Analysis provides information that
Q67: For purposes of long-term solvency analysis the
Q68: One would expect restaurants to have lower
Q68: In assessing the quality of receivables it
Q72: If accounts payable turnover decreases, this could
Q78: If a company sells its receivables, this
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