Which of the Following Transactions Would Increase the Current Ratio

question 55

Multiple Choice

Which of the following transactions would increase the current ratio of a company if the ratio is currently greater than 1?

• A)Paid the principal on a long-term note payable.
• B)Borrowed cash on a short-term note.
• C)Sold inventory for more than cost.
• D)Purchased supplies with cash.

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Definitions:

Turkmenistan

A country located in Central Asia, bordered by the Caspian Sea and largely covered by the Karakum Desert.

Prospective Memory

The element of memory that facilitates the remembering of actions or intentions scheduled for a forthcoming time.

Perform Actions

Executing or carrying out tasks or operations through physical or mental efforts.

Retrograde

Pertaining to moving or occurring in a backward direction; often used in the context of astronomy to describe the apparent backward motion of planets as observed from Earth, or in medicine to refer to memory loss for periods before a traumatic event.