Which of the Following Statements Is Most Correct

question 50

Multiple Choice

Which of the following statements is most correct?

• A) If a company increases its current liabilities by $1,000 and simultaneously increases its inventories by $1,000, its current ratio must rise.
• B) If a company increases its current liabilities by $1,000 and simultaneously increases its inventories by $1,000, its quick ratio must fall.
• C) A company's quick ratio may never exceed its current ratio.
• D) Answers b and c are correct.
• E) None of the answers above is correct.

---

Definitions:

Spatial Orientation

The ability to recognize and navigate the position and direction of oneself and objects in space.

Verbal Memory

The ability to remember and recall words and other verbal items; a component of cognitive functioning related to the processing and use of language.

Inductive Reasoning

A logical process in which multiple premises, all believed true, are combined to obtain a specific conclusion.

Longitudinal Research

A research design that follows the same individuals over time.