Solvent Ltd Has a Quick Ratio of 1

question 5

Multiple Choice

Solvent Ltd has a quick ratio of 1.2:1 and its current liabilities amount to $200,000. If it purchased $40,000 of inventory on credit, its new quick ratio would be:

• A)unable to be calculated.
• B)higher.
• C)unaffected by the transaction.
• D)lower.

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Definitions:

Erg

A unit of energy in the centimeter-gram-second (CGS) system, equivalent to the work done by a force of one dyne exerted for a distance of one centimeter.

Basic Drive

Fundamental motivational forces that drive behavior, such as hunger, thirst, sex, and avoidance of pain.

Personality Development

The growth and change in an individual’s character and behavioral traits over their lifespan.

Cattell

Raymond Cattell was a psychologist known for his research on personality theory and his development of the 16 Personality Factor (16PF) questionnaire.