Bicksler Corporation Has a Current Ratio of 2

question 52

Multiple Choice

Bicksler Corporation has a current ratio of 2.0 on 21st July. On 22nd July, Bicksler purchased (and received) raw materials on credit from its supplier. Assuming all other things are equal, how will this transaction affect the current ratio of Bicksler?

• A) The current ratio will increase.
• B) The current ratio will decrease.
• C) The current ratio will become equal to its quick ratio.
• D) The quick ratio will become more than its current ratio.
• E) The current ratio will remain the same.

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Definitions:

Dilute Urine

Urine that has a lower concentration of solutes, often a result of increased hydration or specific kidney functions.

Excretes

The elimination of waste products from the body or a biological system, a vital process for maintaining homeostasis.

Uric Acid

A waste product formed from the breakdown of purines, substances found in certain foods, which is excreted by the kidneys in urine.

Alligators

Large, typically nocturnal, semiaquatic reptiles belonging to the family Alligatoridae, characterized by their broad snouts and powerful tails.