If Current Assets Exceed Current Liabilities, Prepaying an Expense on the Last

question 67

Multiple Choice

If current assets exceed current liabilities, prepaying an expense on the last day of the year will:

• A) decrease the current ratio.
• B) increase the acid-test ratio.
• C) decrease the acid-test ratio.
• D) increase the current ratio.

---

Definitions:

Oppressive Child Labor

employment practices that are detrimental to the physical and mental development of children, often violating laws and regulations designed to protect them.

Fair Labor Standards Act

U.S. legislation that establishes minimum wage, overtime pay eligibility, and child labor standards.

Department of Labor

A federal agency responsible for ensuring safe working conditions, fair pay, and employment opportunities, as well as enforcing labor laws.

Family and Medical Leave Act

A U.S. law that allows eligible employees to take unpaid, job-protected leave for specified family and medical reasons, with continuation of group health insurance coverage.