During the Current Year,a Company Issues $200,000 in Long-Term Bonds

question 145

Multiple Choice

During the current year,a company issues $200,000 in long-term bonds and buys $200,000 in inventory for cash.Which of the following statements is true regarding the company's year-end ratios?

• A)The quick ratio will stay the same and the times interest earned ratio will fall.
• B)The quick ratio will rise and the times interest earned ratio will rise.
• C)The quick ratio will rise but the times interest earned ratio will fall.
• D)The quick ratio will rise and the times interest earned ratio will stay the same.

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Definitions:

Trace Consolidation

The process by which memories become stable in the brain, transitioning from a vulnerable state after initial encoding to a more lasting state.

Semantic Memory

Memory for facts (including word meanings); these memories are not tied to any specific time or place.

Hippocampus

A temporal lobe structure that plays a pivotal role in learning and forming new memories.

Mental Imagery

The cognitive process of visualizing scenes, objects, or events without their immediate presence.