Assume That a Company's Current Ratio Is 2

question 126

Multiple Choice

Assume that a company's current ratio is 2.0. If the company purchases inventory on credit, which of the following is true?

• A)The current ratio will increase.
• B)The current ratio will decrease.
• C)There will be no net impact on the current ratio.
• D)The current ratio will change, but there will be no effect on the quick ratio.

Determine the impact of seller statements and how they can constitute a warranty.

Recognize the rights of third parties and beneficiaries under warranty claims in the context of the UCC.

Explain the significance and effects of full warranties under the Magnuson-Moss Act.

Identify circumstances under which an implied warranty of fitness for a particular purpose is granted.

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Definitions:

Chemicals

Substances with distinct molecular compositions used in or produced by chemical processes.

Mouths

Openings in organisms through which food intake occurs; also play key roles in communication and respiration in some species.

Legs

Limbs or appendages of an animal used for support and movement, typically found in pairs.

Ascaris Lumbricoides

A type of roundworm, or helminth, that can cause the disease ascariasis when it infects a human host's intestines.