Which of the Following Transactions Will Increase the Current Ratio

question 80

Multiple Choice

Which of the following transactions will increase the current ratio (assuming the ratio is initially greater than 1) ?

• A) purchasing inventory on credit
• B) selling inventory for more than cost
• C) buying office supplies
• D) collecting accounts receivable

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Definitions:

Two-Way Flow

describes a communication or process that involves reciprocal action or exchange between two parties or systems.

Buyer Seller

The two parties involved in a transaction, where one is purchasing a product or service and the other is providing it.

Advertising

A form of communication aimed at persuading an audience to purchase or take some action upon products, ideas, or services.

Imc Efforts

Initiatives and activities aimed at utilizing integrated marketing communications to ensure a consistent message across all marketing channels.