Which of the Following Would Improve a Current Ratio That

question 42

Multiple Choice

Which of the following would improve a current ratio that is now 1.2?

• A)Selling long-term assets for cash.
• B)Purchasing land for cash.
• C)Buying equipment in exchange for a two-year note.
• D)Purchasing inventory on account.

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Definitions:

Deductive Reasoning

A method of reasoning from the general to the specific, where conclusions follow logically from premises.

Investigative Expertise

Specialized skill or knowledge in conducting detailed and systematic examinations or inquiries.

Sound

A logical argument that is both valid and based on accurate premises.

Valid

Pertaining to an argument or claim that is logically sound and holds under scrutiny.