The Quick Ratio Will Be Negatively Impacted By

question 86

Multiple Choice

The quick ratio will be negatively impacted by:

• A)tying up cash in inventory
• B)increasing accounts receivable
• C)decreasing the level of prepaid accounts
• D)increasing levels of long term debt

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Definitions:

Percentage

A portion or share expressed as a fraction of 100.

Net Amount

The final amount remaining after all deductions, like taxes and fees, have been subtracted from the gross amount.

Collect Like Terms

A mathematical process to simplify algebraic expressions by combining constants and variables that are the same.

Operation Indicated

A term referring to the specific process or calculation suggested by the context, often mathematical or procedural.