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

question 78

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 $29,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, Year 2 Gant paid $3,600 on accounts payable. Which of the following statements is not true?

• A)Gant's quick ratio will increase and its current ratio will decrease.
• B)Gant's quick ratio will increase.
• C)Gant's working capital will remain the same.
• D)Gant's current ratio will increase.

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Definitions:

Hypnosis

A trance-like state of heightened focus and concentration achieved through verbal repetition and mental images, which can be used for therapy or relaxation.

Altered State

A condition of consciousness that is markedly different from the normal waking state, which can be induced by various methods such as meditation, drug use, or hypnosis.

Highly Suggestible

The state or quality of being easily influenced by suggestions or ideas, often leading to altered perceptions or behaviors.

Suprachiasmatic Nucleus (SCN)

A small region in the brain's hypothalamus responsible for controlling circadian rhythms through the regulation of sleep-wake cycles.