All Else the Same, Which of the Following Occurs When

question 143

Multiple Choice

All else the same, which of the following occurs when a firm buys inventory with cash?

• A) The quick ratio goes up if it was greater than one before the change.
• B) The current ratio goes down if it was greater than one before the change.
• C) The current ratio goes down if it was lower than one before the change.
• D) The quick ratio goes up if it was lower than one before the change.
• E) The quick ratio declines but the current ratio remains unchanged.

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Definitions:

Strength Training

Strength training is a type of physical exercise specialized in using resistance to induce muscular contraction, which builds the strength, anaerobic endurance, and size of skeletal muscles.

Reduce

To decrease in size, quantity, or intensity, often in reference to waste management or minimizing resource consumption.

Social Readjustment

The process of adapting to significant changes in one's life, which can be a source of stress.

Vacation

A duration spent outside of one's home or workplace dedicated to resting, unwinding, or journeying.