If Management Decided to Create a Hidden Reserve to Make

question 97

Multiple Choice

If management decided to create a hidden reserve to make the company look more profitable by increasing the allowance for uncollectibles, what would be the effect on the current ratio and quick ratio?
$\begin{array}{ll}&\text { Current } & \text { Quick } \\&\text { Ratio } & \text { Ratio } \\A.&\text { Increase } & \text { Increase } \\B.&\text { Increase } & \text { Decrease } \\C.&\text { Decrease } & \text { Increase } \\D.&\text { Decrease } & \text { Decrease }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Positive Psychology

A branch of psychology that focuses on the study of positive human functioning and what makes life most worth living.

Subjective Well-being

Subjective well-being refers to how individuals experience and evaluate their own lives in terms of happiness and contentment.

Feel-good, Do-good Phenomenon

The tendency for people to be more willing to help others when they are in a good mood themselves.

Life Expectancy

The average number of years an individual is expected to live based on current mortality rates.