Westcott,Inc.has the Following Information from Its Accounting Records

question 153

Multiple Choice

Westcott,Inc.has the following information from its accounting records:

If Westcott uses cash of $5,000 to pay a current liability,its:

• A) current ratio increases and its debt-to-assets ratio increases
• B) current ratio increases and its debt-to-assets ratio decreases
• C) current ratio decreases and its debt-to-assets ratio increases
• D) current ratio decreases and its debt-to-assets ratio decreases

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Definitions:

Scientific Test

A methodical procedure carried out with the aim of verifying, falsifying, or establishing the validity of a hypothesis.

Telepathy

The supposed communication of thoughts or ideas through means other than the known senses, considered pseudoscience by mainstream science.

Extrasensory

Pertaining to perception or communication outside of the normal sensory processes, often referred to as ESP or sixth sense.

Perception

The process by which individuals interpret and organize sensory information to produce a meaningful experience of the world.