All Else Unchanged, Which of the Following Is True When

question 322

Multiple Choice

All else unchanged, which of the following is true when a firm sells a fixed asset on credit (an account receivable is created) ?

• A) The current ratio goes up but the quick ratio is unchanged.
• B) The current ratio goes up but the quick ratio declines.
• C) The quick ratio goes up but the current ratio is unchanged.
• D) The quick ratio goes up but the current ratio declines.
• E) The quick ratio and the current ratio both go up.

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Definitions:

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A period of major industrialization that occurred during the late 1700s and early 1800s, leading to significant changes in technology, economies, and society.

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The increase in the efficiency of producing goods and services, typically measured as the output per unit of input over time.

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