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:

Work Environments

The physical and social settings in which people perform their jobs, which can significantly affect their performance and well-being.

Charisma

A personal quality that gives an individual influence or authority over large numbers of people.

Goal-Based Vision

A strategy or methodology focused on establishing and achieving specific objectives or outcomes.

Clear Communication

The process of conveying information in a straightforward and easily understandable manner.