Which of the Following Actions Will Cause an Increase in the Quick

question 5

Multiple Choice

Which of the following actions will cause an increase in the quick ratio in the short run?

• A) $1,000 worth of inventory is sold, and an account receivable is created. The receivable exceeds the inventory by the amount of profit on the sale, which is added to retained earnings.
• B) A small subsidiary which was acquired for $100,000 two years ago and which was generating profits at the rate of 10 percent is sold for $100,000 cash. (Average company profits are 15 percent of assets.)
• C) Marketable securities are sold at cost.
• D) All of the answers above.
• E) Answers a and b above.

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Definitions:

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A foreign policy doctrine that argues for the spread of democracy and open markets, often associated with Woodrow Wilson's presidency.

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The national government of a federation, which holds the authority to govern issues that affect the entire country, distinct from state or local governments.

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A period from 1900 to 1945 marked by rapid industrialization, significant technological advancements, and major global conflicts such as World War I and World War II.

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Refers to people of African descent, often used in the context of discussing racial issues, identity, and experiences, particularly in the United States.