If a Firm's Existing Quick Ratio Is 1

question 27

Multiple Choice

If a firm's existing quick ratio is 1.0, and all other variables remain unchanged, the quick ratio can be increased by:

• A) repayment of a loan.
• B) selling of inventory on credit.
• C) receiving interest income.
• D) collecting accounts receivable.
• E) purchase of fixed assets for cash.

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Definitions:

Intelligence Test

A standardized measure designed to assess human intelligence, quantifying abilities such as reasoning, problem-solving, and understanding complex ideas.

Alfred Binet

A French psychologist who, with Theodore Simon, developed the first intelligence test in the early 20th century.

Mental Age

A measure of an individual's mental attainment based on the age at which an average individual achieves a particular score on a test of intelligence or aptitude.

Chronological Age

The age of an individual or object expressed as the amount of time since their date of birth or creation.