Which of the Following Transactions Would Result in a Decrease

question 96

Multiple Choice

Which of the following transactions would result in a decrease in the current ratio?

• A)Collection of cash from an account receivable.
• B)Selling shares of stock to stockholders in exchange for cash.
• C)Purchasing a delivery vehicle by signing a long-term note payable.
• D)Purchasing land by paying cash.

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Definitions:

Electronegativity

A measure of an atom's ability to attract and hold onto electrons when it forms a chemical bond.

Subatomic Particles

Constituents such as protons, neutrons, and electrons that make up atoms, the basic units of matter.

Electrons

Negatively charged subatomic particles that orbit the nucleus of an atom, crucial for chemical bonds and electricity.

Protons

Subatomic particles found in the nucleus of an atom, carrying a positive electrical charge, and along with neutrons, contributing to the atomic mass of elements.