Other Things Held Constant, Which of the Following Will Not

question 34

Multiple Choice

Other things held constant, which of the following will not affect the quick ratio? (Assume that current assets equal current liabilities.)

• A) Fixed assets are sold for cash.
• B) Cash is used to purchase inventories.
• C) Cash is used to pay off accounts payable.
• D) Accounts receivable are collected.
• E) Long-term debt is issued to pay off a short-term bank loan.

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Definitions:

Acid/Base Reaction

A chemical process involving the transfer of protons (H+) from an acid to a base.

Strong Bases

Substances that readily donate hydroxide ions or accept protons during a chemical reaction, characterized by their complete dissociation in water.

Electronegativity

An indicator of how strongly an atom pulls towards itself a pair of electrons that are being shared in a bond.

Resonance Stabilization

The stabilization of molecular structures by delocalizing electrons within conjugated systems or between atoms that can host multiple structures.