Which of the Following Transactions Would Increase a Company's Positive

question 108

Multiple Choice

Which of the following transactions would increase a company's positive current ratio?

• A) Borrow money on a short-term note
• B) Repay the principal on a short-term note
• C) Sell a temporary investment at a loss
• D) Use the equity method to reflect earnings of an investee
• E) None of these choices would increase a company's positive current ratio

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Definitions:

Qur'an

The central religious text of Islam, believed by Muslims to be a revelation from God (Allah).

Stock Option Plan

A compensation strategy that gives employees the option to buy company stock at a future date at a price established when the option is granted.

Incentive Plans

Designed compensation strategies that aim to motivate employees by tying a portion of their earnings to performance metrics.

Work Teams

Groups of employees who are assigned to collaborate and work together towards achieving a common goal or completing a specific project.