If the Quick Ratio Is Currently Greater Than 1

question 31

Multiple Choice

If the quick ratio is currently greater than 1.0, which one of the following events would increase the quick ratio?

• A)Warranty expense is accrued.
• B)A cash dividend previously declared is paid.
• C)Long-term debt is paid off.
• D)Inventory is purchased on account.

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Definitions:

Structure

The arrangement or organization of interrelated elements in a system, whether it be physical, social, or organizational.

Performance

The action or process of carrying out or accomplishing an action, task, or function.

Public Sector

The part of the economy that is owned and operated by the government, offering services to the public rather than seeking profit.

Evolution

The process through which organisms change over time as a result of changes in heritable physical or behavioral traits.