A Company's Current Ratio and Its Acid-Test Ratio Are Both

question 257

Multiple Choice

A company's current ratio and its acid-test ratio are both greater than 1. Payment of an account payable would:

• A) increase the current ratio but the acid-test ratio would not be affected.
• B) increase the acid-test ratio but the current ratio would not be affected.
• C) increase both the current and acid-test ratios.
• D) decrease both the current and acid-test ratios.

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Definitions:

Less Familiar

Referring to something or someone that is not well known or not often encountered, leading to a lack of knowledge or comfort.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc., especially in a community or organization.

Autopsies

Medical examinations of a body after death to determine the cause of death or the extent of disease, involving both external and internal inspection.

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Individuals recognized within a religion for their authority and leadership in spiritual matters.