Which of the Following Transactions Would Increase the Current Ratio

question 55

Multiple Choice

Which of the following transactions would increase the current ratio of a company if the ratio is currently greater than 1?

• A)Paid the principal on a long-term note payable.
• B)Borrowed cash on a short-term note.
• C)Sold inventory for more than cost.
• D)Purchased supplies with cash.

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Definitions:

Knowledge Structures

Mental frameworks or organized patterns of thought that individuals use to process, store, and retrieve information.

Scripts

Predefined sequences or schemas to perform tasks or roles, often applied in behavioral psychology and programming.

Counterfactuals

Statements or propositions imagining what would happen if past events were different, essentially considering alternative scenarios or outcomes that did not actually occur.

Severe Brain Damage

Significant injury to the brain that can lead to profound physical or cognitive impairments and changes in personality.