A Company with $50,000 in Current Assets,$25,000 in Quick Assets,and

question 97

Multiple Choice

A company with $50,000 in current assets,$25,000 in quick assets,and $30,000 in current liabilities makes a payment of a $1,500 current debt.As a result of this transaction,the current ratio and quick ratio will

• A) both increase.
• B) both decrease.
• C) increase and decrease,respectively.
• D) remain the same and decrease,respectively.

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Definitions:

College Tuition

Refers to the amount of money charged by colleges or universities for instruction and other services.

Annuity Due

A type of annuity payment that is due at the beginning of each period, as opposed to at the end, which affects valuation and payment calculations.

Ordinary Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time.

Table Approach

A methodological approach that utilizes tables to organize and analyze data or information systematically.