Which of the Following Transactions Increase Both the Quick Ratio

question 96

Multiple Choice

Which of the following transactions increase both the quick ratio and the current ratio assuming that both ratios are greater than 1?

• A)Collecting an account receivable.
• B)Purchasing inventory on account.
• C)Accruing revenue earned at year-end.
• D)Selling inventory on account at the cost of the inventory.

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Definitions:

Identity Moratorium

Marcia’s term for the status of individuals who are in the midst of a crisis but whose commitments either are absent or are only vaguely defined.

Crisis

A period of identity development during which the adolescent is choosing among meaningful alternatives.

Commitment

Personal investment in identity.

Presence

The state or fact of existing, occurring, or being present in a place or thing.