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.

---

Definitions:

Deductive Reasoning

A process of logical reasoning from one or more statements (premises) to reach a logically certain conclusion.

Modus Ponens

A logical argument form and a rule of inference that, if a premise implies a conclusion and the premise is true, then the conclusion must also be true.

Modus Tollens

A logical argument form that suggests if a implies b, and b is found to be false, then a must also be false.

Antecedent

An event, condition, or cause that logically or temporally precedes another; in grammar, the noun or noun phrase that a pronoun refers to.