An increase in current liabilities will have which one of the following effects, all else held constant?

An increase in current liabilities will have which one of the following effects, all else held constant? Assume all ratios have positive values.    A.  increase in the cash ratio B.  increase in the net working capital to total assets ratio C.  decrease in the quick ratio D.  decrease in the cash coverage ratio E.  increase in the current ratio

21.	An increase in which one of the following will increase a firm's quick ratio without affecting its cash ratio?    A.  accounts payable B.  cash C.  inventory D.  accounts receivable E.  fixed assets

22.	A supplier, who requires payment within ten days, should be most concerned with which one of the following ratios when granting credit?    A.  current B.  cash C.  debt-equity D.  quick E.  total debt

23.

A firm has an interval measure of 48. This means that the firm has sufficient liquid assets to do which one of the following?    A.  pay all of its debts that are due within the next 48 hours B.  pay all of its debts that are due within the next 48 days C.  cover its operating costs for the next 48 hours D.  cover its operating costs for the next 48 days E.  meet the demands of its customers for the next 48 hours

24.	Ratios that measure a firm's financial leverage are known as _____ ratios.    A.  asset management B.  long-term solvency C.  short-term solvency D.  profitability E.  book value

25.

Which one of the following statements is correct?    A.  If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0. B.  Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. C.  The debt-equity ratio can be computed as 1 plus the equity multiplier. D.  An equity multiplier of 1.2 means a firm has $1.20 in sales for every $1 in equity. E.  An increase in the depreciation expense will not affect the cash coverage ratio.