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:

Mississippi Valley

A region in the United States surrounding the Mississippi River, known for its significant historical and geographical features.

Civil Law

The body of laws that govern the rights and responsibilities either between persons or between persons and their government.

Rights Violated

Instances where an individual's legally protected freedoms or entitlements are infringed upon.

Criminal Law

The body of law that relates to crime and prescribes conduct perceived as threatening, harmful, or otherwise endangering to the property, health, safety, and moral welfare of people.