Which of the Following Transactions Increases Both the Quick and Current

question 100

Multiple Choice

Which of the following transactions increases both the quick and current ratios 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:

Understanding

The ability to grasp the meaning, significance, or nature of something, often through insight, learning, or comprehension.

Perception

The method by which the sensations experienced at any given moment are interpreted and organized in some meaningful fashion.

Hippocampus

A part of the brain within the temporal lobe, crucial for memory formation and spatial navigation.

Proactive and Retroactive Inhibition

Forms of interference where old information interferes with the learning of new information (proactive) and where new information causes forgetting of old information (retroactive).