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:

Piaget's Cognitive Theory

A theory of cognitive development that outlines how children's abilities to think and reason evolve through four distinct stages as they grow.

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A transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

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Unjust prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Ethnic Culture

The shared customs, traditions, values, beliefs, and identity within a group of people who identify with each other based on common ancestral, social, cultural, or national experiences.