A Company Has a Current Ratio of 2

question 80

Multiple Choice

A company has a current ratio of 2.0 and a quick ratio of 1.4.If the company then collects an accounts receivable,which of the following is a true statement?

• A)The current ratio will not change and the quick ratio will increase.
• B)The current ratio will increase and the quick ratio will increase.
• C)The current ratio and the quick ratio will not change.
• D)The current ratio will increase and the quick ratio will decrease.

---

Definitions:

Social Constructionist

A perspective holding that many aspects of our lived experience, including our knowledge, are created through interactions within society.

Realities

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Language

A system of communication used by a particular community or country, consisting of written or spoken words, gestures, or signs.

Egalitarian Relationship

A relationship where all participants are treated as equals and have equal rights and opportunities.