Which One of the Following Actions Will Increase the Current

question 78

Multiple Choice

Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0.

• A)Cash purchase of inventory
• B)Cash payment on an account receivable
• C)Cash payment of an account payable
• D)Credit sale of inventory at cost
• E)Cash sale of inventory at a loss

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Definitions:

Environmental Regulations

Laws and rules enforced by governments to manage and reduce pollution and to protect natural resources.

Congress

The legislative body of the United States federal government, consisting of two chambers: the House of Representatives and the Senate.

Underground Storage Tanks

Containers located below ground surface, used for storing liquids or gases and subject to environmental regulation.

Environmental Impact Statement

A detailed document required by law that outlines the effects of a proposed project or development on the environment.