An Increase in Which One of the Following Accounts Increases

question 175

Multiple Choice

An increase in which one of the following accounts increases a firm's current ratio without affecting its quick ratio?

• A) Accounts payable
• B) Cash
• C) Inventory
• D) Accounts receivable
• E) Fixed assets

---

Definitions:

Closed Economy

A financial structure that doesn't engage with external economies through trade, investment, or the movement of people.

Public Saving

The difference between the tax revenues and government spending of a country, representing the government's surplus or deficit.

National Saving

The total saving of an economy, consisting of both private and public saving.

Public Saving

The difference between government tax revenues and government expenditures, often used to assess a government's financial health.