Assume the Current Ratio Is 3 to 4

question 127

Multiple Choice

Assume the current ratio is 3 to 4. Purchases of inventory on account would cause the current ratio to

• A) increase.
• B) be unchanged since the effects offset each other.
• C) be unchanged since it has no effects on any current accounts.
• D) decrease.

---

Definitions:

Slide Show

A presentation of a series of still images on a screen in a prearranged sequence, often enhanced with effects, transitions, and sometimes sound.

Entire Screen

The full display area of a computer monitor, television, or another visual display device.

Title Slide

The introductory slide in a presentation that usually contains the title and sometimes the author or presenter's name.

New Slide Button

A control in presentation software such as Microsoft PowerPoint that allows users to quickly insert a new slide into their presentation deck.