Which of the Following Would Help a Company Improve Its

question 19

Multiple Choice

Which of the following would help a company improve its quick ratio?

• A)Borrowing money on a long-term note just before the end of the accounting period.
• B)Shifting resources from long-term assets to supplies and inventory.
• C)Shifting obligations from long-term liabilities to short-term liabilities.
• D)Acquiring inventory by issuing a long-term note.

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Definitions:

Consideration

A value promised in exchange for a certain act in a contractual agreement.

Quantum Meruit

A legal principle where a party is compensated with a reasonable sum for goods or services provided, even if no contract exists.

Quantum Valebant

A principle in contract law that allows for the recovery of as much as deserved, or the reasonable value of goods or services rendered when no contract price was established.

Commission

A fee paid to an agent or employee for conducting a transaction or performing a service.