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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
As the accounts payable manager, you have always been able to negotiate low interest rates when you borrow money to purchase capital. If the company's liabilities have increased from the last time you negotiated a loan, would you expect to qualify for the same low rates?
No, as the company's current ratio would be lower.
Yes, as there is no relationship between liability and loan qualifications.
Yes, as the company's current ratio would be higher.
No, as your cash on hand is lower if your liabilities increase.
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