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:

Registered Agent

A person or business designated to receive legal documents and service of process on behalf of a company.

Corporation

A legal entity that is separate from its owners, with its own rights and obligations, and can conduct business, enter contracts, sue, and be sued.

Social Security Offices

Government facilities where individuals can obtain assistance with Social Security benefits and services.

Post Offices

Governmental or private establishments where postal services such as mail receipt, dispatch, and delivery are handled.