Which of the Following Transactions Will Increase the Current Ratio

question 65

Multiple Choice

Which of the following transactions will increase the current ratio assuming the ratio is initially greater than 1) ?

• A)Purchasing inventory on credit
• B)Selling inventory for more than cost
• C)Buying office supplies
• D)Collecting accounts receivable

---

Definitions:

Maturation

The process of becoming mature; the process of developing in the body or mind naturally over time.

Culture

The shared values, customs, and social practices of a particular group or society that influence behavior and perceptions.

Living Conditions

The environmental, social, and economic factors that affect how individuals live, such as housing quality, access to food and healthcare, and community safety.

Clinical Interview

A structured interaction between a clinician and a client used to gather personal, psychological, and medical history for diagnostic and treatment purposes.