Which of the Following Actions Will Cause an Increase in the Quick

question 65

Multiple Choice

Which of the following actions will cause an increase in the quick ratio in the short run?

• A) $1,000 worth of inventory is sold,and an account receivable is created.The receivable exceeds the inventory by the amount of profit on the sale,which is added to retained earnings.
• B) A small subsidiary which was acquired for $100,000 two years ago and which was generating profits at the rate of 10 percent is sold for $100,000 cash.(Average company profits are 15 percent of assets. )
• C) Marketable securities are sold at cost.
• D) All of the above.
• E) Answers a and b above.

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A measure of the energy released by an earthquake, commonly quantified using the Richter scale or the moment magnitude scale.

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Type of rock that has undergone transformation by heat, pressure, or other natural processes, altering its original form without melting it.

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Particles of soil, sand, and minerals that settle at the bottom of bodies of water, often carried there by water flow or wind.