At Year-End 2010,General Tech Reported a Quick Ratio of 2

question 87

Multiple Choice

At year-end 2010,General Tech reported a quick ratio of 2.75 and at year-end 2009 it was 3.10.Which of the following is a potential cause of the decrease in this ratio?

• A)An increase in accounts payable and a decrease in inventories.
• B)A decrease in inventories and an increase in long-term notes payable.
• C)A decrease in short-term borrowings and an increase in cash.
• D)An increase in accounts payable and a decrease in cash.

Recognize the characteristics and examples of maintenance activities.

Comprehend different communication network structures and their impact on team dynamics.

Understand the types of activities that disrupt team cohesion and effectiveness.

Describe decision-making processes within teams and the factors influencing their effectiveness.

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Definitions:

Total Assets

The total of a company's assets, encompassing both short-term and long-term assets.

Direct Method

In cash flow statement preparation, this approach lists the major categories of gross cash receipts and payments, offering more detail compared to the indirect method.

Operating Activities

Activities that relate to the primary operations of a company, including production, sales, and delivery of its products or services.

Income Statement

A document detailing a corporation's financial results for a given fiscal period, including income, costs, and net profit.