Assume the Current Ratio Is 3 to 4

question 75

Multiple Choice

Assume the current ratio is 3 to 4.Purchases of inventory on account would cause the current ratio to

• A) increase
• B) decrease
• C) be unchanged since the effects offset each other
• D) be unchanged since it has no effects on any current accounts

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Definitions:

Redundancy

The duplication of critical components or functions of a system with the intention of increasing reliability of the system, often in the case of a backup or fail-safe.

Database Systems

Structured collections of data or databases managed by software that allows for the storage, retrieval, and manipulation of data.

Isolation

A state of being separated from others, which can be either physical separation or feeling of being disconnected from others.

Independence

Independence signifies the state or quality of being self-reliant and not subject to outside control, often used in the context of countries, organizations, or individuals.