Which of the Following Transactions Would Result in an Increase

question 39

Multiple Choice

Which of the following transactions would result in an increase 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 building with cash.
• D)Declaration of a cash dividend by the board of directors.

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Definitions:

Centipedes

Arthropods belonging to the class Chilopoda, characterized by long bodies with one pair of legs per body segment, and predators to insects.

Mites

Small arthropods belonging to the subclass Acarina (including ticks) that can live in diverse environments, including soil, water, and as parasites on plants and animals.

Nudibranch Mollusks

Colorful sea slugs known for their striking forms and colors, which have shed their shells during evolutionary development.

Tracheal Tubes

A system of branching air ducts within insects that spread across the body to facilitate the exchange of gases.