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.

---

Definitions:

Windows Operating System

A family of graphical operating systems developed and marketed by Microsoft, commonly installed on personal computers, laptops, and servers.

Macintosh Operating System

The operating system developed by Apple Inc. for their Macintosh line of personal computers, known for its user-friendly interface.

Communicating Electronically

The process or act of exchanging information through electronic means, such as emails, instant messaging, or social media platforms.

Increasing Frequency

Refers to events or actions happening at a greater rate or more often over a specified period.