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

question 75

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 not true?

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

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Definitions:

Hostage Taking

The illegal act of capturing and holding individuals against their will, often to procure ransom or fulfill demands.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution.

Alternative Solutions

are different options or approaches considered in problem-solving or decision-making processes.

Inadequate Control

A situation where there is a lack of effective mechanisms to regulate or guide actions and processes towards desired outcomes.