All Else Unchanged, Which of the Following Is True When

question 379

Multiple Choice

All else unchanged, which of the following is true when a firm sells a fixed asset on credit (an account receivable is created) ?

• A) The current ratio goes up but the quick ratio is unchanged.
• B) The current ratio goes up but the quick ratio declines.
• C) The quick ratio goes up but the current ratio is unchanged.
• D) The quick ratio goes up but the current ratio declines.
• E) The quick ratio and the current ratio both go up.

---

Definitions:

Savings

Money that has been set aside for future use, typically stored in a financial institution or invested, allowing for growth over time.

Recognition

The cognitive process of identifying a previously encountered or learned item, event, or experience from among a list of options.

Free Recall

A test of memory in which a person is asked to remember information without explicit cues or prompts.

Flashbulb Memories

Highly detailed and vivid memories of significant or emotional events, which seem to be recorded in the mind like a photograph.