Which of the Following Transactions Will Increase a Current Ratio,which

question 10

Multiple Choice

Which of the following transactions will increase a current ratio,which is currently 2.5?

• A)Receiving cash from signing a 6-month note payable.
• B)Accruing an expense.
• C)Using cash to pay an account payable.
• D)Collecting an account receivable.

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Definitions:

China

A country in East Asia, known for being the world's most populous nation and having a rich history, diverse culture, and significant economic influence globally.

Sub-Saharan Africa

The region of Africa located south of the Sahara Desert, characterized by diverse cultures, languages, and histories.

Dependency Theory

Views economic underdevelopment as the result of exploitative relations between rich and poor countries.

Modernization Theory

Holds that economic underdevelopment results from poor countries lacking Western attributes, including Western values, business practices, levels of investment capital, and stable governments.