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:

Explanatory Style

Explanatory style refers to how individuals explain the causes of events in their lives, which can influence their optimism and pessimism.

Rumination

The continuous and obsessive thinking about certain distressing thoughts or feelings, often contributing to emotional distress.

Distraction

A factor or event that diverts attention from a desired focus, often leading to decreased performance or awareness.

Self-Esteem

One’s overall subjective sense of personal worth or value.