Which of the Following Could Explain a Substantial Increase in the Current

question 18

Multiple Choice

Which of the following could explain a substantial increase in the current ratio (presently 1:1) ?

• A) Purchase of inventory for cash
• B) Sale of a major noncurrent asset near year-end
• C) A large prepayment near year-end
• D) Received a cash deposit for work to be done next year

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Definitions:

Developmental Psychology

A branch of psychology that studies how people grow and change throughout the lifespan, from infancy through old age.

Life-Span Development Approach

A perspective that studies human growth, development, and change throughout the entire lifespan, from birth to death.

Longitudinal Method

A research design in which the same participants are observed repeatedly over a period of time.

Biographical Approach

A method of study that involves analyzing a person's life story and experiences to understand their behaviors and mental states.