Other Things Held Constant, Which of the Following Will DECREASE

question 16

Multiple Choice

Other things held constant, which of the following will DECREASE the current ratio, assuming an initial current ratio greater than 1.0?

• A)Machinery is purchased using cash
• B)Inventory is sold at cost for cash
• C)Accounts payables are paid with cash
• D)Both a & c
• E)None of the above

---

Definitions:

Restatements

Publications that endeavor to distill the common law and its application into a series of principles or rules, prepared by the American Law Institute.

Common Law Doctrines

Legal principles that have developed over time through the decisions of courts rather than through legislative statutes or executive branch action.

The U.S. Constitution

The foundational document of the United States, outlining the framework for the federal government and enumerating individual rights.

French Law

A legal system primarily based on written codes (civil law), originating in France and influencing the legal systems of many countries.