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:

Americas

The continents of North and South America, including the Central American and Caribbean regions, known for diverse cultures, histories, and ecological systems.

Affluent Society

A society that possesses a high level of wealth and consumption, often characterized by a high standard of living.

Marshall Sahlins

An American anthropologist known for his work on the structure of kinship and the evolution of societies and cultures.

Paleolithic

Referring to the earliest period of the Stone Age, characterized by the use of primitive stone tools and hunting and gathering as a way of life.