1. If a company’s current ratio increases from 1.10 to 1.30 from one year to the next, it can be definitely concluded that ________.
current assets have increased
current liabilities have decreased
none of these choices are correct
the company’s liquidity has increased
2. Which of the following items would likely be of concern when analyzing cash flow from operating activities?
Repayment of debt
Payments of dividends
Increasing inventories
Decreasing accounts receivable