Desktop Co

question 77

Multiple Choice

Desktop Co.presently has a current ratio of 1.2 to 1 and an acid-test ratio of 0.8 to 1.What will be effect of prepaying next year's office rent of $50,000?

• A) No effect on either the company's current ratio or its acid-test ratio.
• B) No effect on the company's current ratio but will decrease its acid-test ratio.
• C) A decrease in both the company's current ratio and its acid-test ratio.
• D) An increase in both the company's current ratio and its acid-test ratio.

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Definitions:

Fair

Fair, in a general sense, refers to being free from bias, dishonesty, or injustice, typically in the context of treatment of individuals or distribution of resources.

Responsive

Being sensitive to and readily reacting to the needs, feelings, or changes in situation of others or oneself.

Active Parenting

Active parenting describes a proactive approach to child-rearing where parents actively engage in guiding, supporting, and educating their children through various stages of development.

Key Qualities

Essential attributes or characteristics that are considered significant or foundational within a certain context.