If a Firm Sold Some Inventory on Credit,its Current Ratio

question 11

True/False

If a firm sold some inventory on credit,its current ratio would probably not change much,but its quick ratio would increase.

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Definitions:

Imperfectly Competitive

A market structure in which all firms do not have equal ability to influence market prices, typically due to differentiation of products or varying number of firms.

Markets

Places or platforms where buyers and sellers meet to exchange goods, services, or information.

Agricultural Act

Legislation related to agricultural activities, policies, and subsidies.

Direct Payments

Cash payments provided by governments to farmers or businesses, often to support incomes, encourage investment, or protect against price fluctuations.