Norton Incorporated could improve its current ratio of 2 by:

A) paying a previously declared stock dividend.
B) writing off an uncollectible receivable.
C) selling merchandise on credit at a profit.
D) purchasing inventory on credit.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Stock Dividend

A distribution of a corporation's earnings to its shareholders in the form of additional shares rather than cash.

Uncollectible Receivable

A receivable that is deemed irrecoverable and is written off as a loss because the debtor is unable to fulfill their obligation.