If a Firm Uses Part of the Cash It Received

question 186

True/False

If a firm uses part of the cash it received from payment of an account receivable to buy inventory and leaves the rest in its bank account, its current ratio will remain unchanged.

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Definitions:

Working Drawings

Detailed drawings that provide the specifications required to construct a project, including dimensions, materials, and assembly instructions.

Detail Drawing

A comprehensive, scaled drawing that provides complete information for the fabrication or construction of a part or assembly.

Assembly Drawing

An assembly drawing is a technical drawing that shows the components of a product or structure and how they fit together, often including a bill of materials and assembly instructions.

Orthographic Projection

A method of representing three-dimensional objects on a two-dimensional surface where the object is viewed from orthogonal or perpendicular angles.