If the Quick Ratio Is Currently Greater Than 1

question 31

Multiple Choice

If the quick ratio is currently greater than 1.0, which one of the following events would increase the quick ratio?

• A)Warranty expense is accrued.
• B)A cash dividend previously declared is paid.
• C)Long-term debt is paid off.
• D)Inventory is purchased on account.

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Definitions:

ESRD

End-Stage Renal Disease is the final stage of chronic kidney disease, where the kidneys no longer function well enough to meet the needs of daily life without dialysis or a kidney transplant.

Specific Gravity

An indicator of how dense a material is in relation to the density of water.

Nitrogenous Constituent

A component consisting primarily of nitrogen, found in organic compounds or biological systems.

Glycosuria

The presence of glucose in the urine, typically an indication of diabetes mellitus.