As of December 31,Year 1,Gant Corporation Had a Current Ratio

question 20

Multiple Choice

As of December 31,Year 1,Gant Corporation had a current ratio of 1.29,quick ratio of 1.05,and working capital of $18,000.The company uses a perpetual inventory system and sells merchandise for more than it cost.On January 1,Year 2,Gant issued common stock at par value for $10,000 cash.Which of the following statements is correct?

• A) Gant's current ratio will decrease.
• B) Gant's current ratio will increase.
• C) Gant's quick ratio will decrease.
• D) Gant's working capital will decrease.

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Definitions:

Heritability Studies

Research efforts aimed at determining how much genetic factors contribute to individual differences in traits and behaviors.

Collective Unconscious

A concept in analytical psychology, introduced by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Jung

Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology and introduced concepts such as the collective unconscious and archetypes.

Humanist Approach

A psychological perspective that emphasizes individual potential and stresses the importance of growth and self-actualization.