A Company Has Liquid Assets of $600,000 and Current Liabilities

question 110

Multiple Choice

A company has liquid assets of $600,000 and current liabilities of $500,000.What is the effect on the quick ratio if the company records an accrual adjustment for salaries of $100,000 and pays accounts payable in the amount of $50,000?

• A)The quick ratio will not change as a result of either of these transactions.
• B)The accrual adjustment will cause the quick ratio to decrease and the payment of accounts payable will cause an increase in the quick ratio.
• C)The accrual adjustment will cause the quick ratio to increase and the payment of accounts payable will not affect the quick ratio.
• D)The accrual adjustment and the payment of accounts payable will both cause the quick ratio to decrease.

Identify the role and impact of philanthropy internationally.

Describe the evolution stages of nonprofit organizations and provide examples.

Understand the classification and categorization of nonprofit and nongovernmental organizations.

Analyze the effectiveness of various global fund-raising strategies.

---

Definitions:

Profit-Maximizing

The strategy or method of modifying the production and sales of products and services to attain the maximum possible profit.

Monopolist

A singular entity or company that has exclusive control over the supply of a particular good or service, giving it significant market power.

P > MR

This inequality indicates a scenario in market pricing where the price (P) of a good exceeds its marginal revenue (MR), common in imperfectly competitive markets.

Positive Economic Profits

Occurs when the total revenues of a firm exceed the total costs, including opportunity costs.