The Current Ratio of a Firm Would Be Increased by Which

question 66

Multiple Choice

The current ratio of a firm would be increased by which of the following?

• A) Land held for investment is sold for cash.
• B) Equipment is purchased, financed by a long-term debt issue.
• C) Inventories are sold for cash.
• D) Inventories are sold on a credit basis.

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Definitions:

Interneuron

A type of neuron that communicates only with other neurons, typically found within the central nervous system and plays a role in reflexes and neuronal circuits.

Arachnoid mater

A delicate membrane that is one of the three layers (meninges) surrounding the brain and spinal cord, providing protection.

Meninges

Membranes that protect the brain and spinal cord.

Subarachnoid space

The area between the arachnoid membrane and pia mater around the brain and spinal cord, filled with cerebrospinal fluid.