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

question 111

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 sold inventory on account for $6,000. Which of the following statements is incorrect?

• A) Gant's current ratio will increase.
• B) Gant's quick ratio will decrease.
• C) Gant's working capital will increase.
• D) None of these answers are correct.

Recognize the phenomenon of group polarization and its outcomes on group decision-making.

Identify and explain the dynamics of conformity and obedience within groups.

Comprehend the techniques used in persuasion and influence.

Distinguish between different social influence processes (e.g., normative vs. informational social influence).

---

Definitions:

Capacity

The ability or potential a system, person, or organization has to perform, produce, contain, or withstand something.

Prestige Economies

Economic systems where the accumulation and display of wealth is not for personal consumption but to gain status and power within a community.

Social Status

The position or rank of a person or group within the society, often determined by factors like wealth, occupation, education, family background, and power.

Monetary Profit

The financial gain obtained when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.