Which One of the Following Actions Will Increase the Current

question 78

Multiple Choice

Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0.

• A)Cash purchase of inventory
• B)Cash payment on an account receivable
• C)Cash payment of an account payable
• D)Credit sale of inventory at cost
• E)Cash sale of inventory at a loss

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Definitions:

Negative Slope

A characteristic of a line on a graph indicating that as one variable increases, the other variable decreases, showing an inverse relationship.

Pearson's Correlation Coefficient

A statistical measure that calculates the strength and direction of the linear relationship between two continuous variables.

Values Squared

The process of multiplying a set of numbers by themselves to calculate the square of each value, often used in statistical analyses.

Squared Values

The result of multiplying a number by itself, symbolizing the power of 2.