How Will a Company's Current Ratio Be Affected by the Purchase

question 212

Multiple Choice

How will a company's current ratio be affected by the purchase of equipment for cash?

• A)The current ratio will increase because current assets increase.
• B)The current ratio will decrease because current liabilities increase.
• C)The current ratio will decrease because current assets decrease.
• D)The current ratio will remain unchanged.

Understand the role of factors and treatments in experimental design.

Identify response variables within a given study and their significance.

Understand the concept of blocking in experimental design and its purposes.

Appreciate the ethical considerations in designing research studies, especially involving human subjects.

---

Definitions:

Standard Transmission

A type of vehicle transmission that requires manual shifting of gears by the driver.

Automatic Transmission

A type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from manual shifting.

Starter Motor Circuit

A system in a vehicle that initiates the engine's operation by engaging the electric starter motor with the engine's flywheel.

Current Draw

The amount of electrical current consumed by an electrical device while in operation, measured in amperes.