Assuming That the Current Ratio Is Currently 2, Which of the Following

question 37

Multiple Choice

Assuming that the current ratio is currently 2, which of the following actions will increase it?

• A) Purchasing inventory with cash.
• B) Purchasing inventory on short-term credit.
• C) Paying off a short-term bank loan with long-term debt.
• D) A customer paying an overdue bill.

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Definitions:

Caterpillar ET

An electronic technician software provided by Caterpillar Inc. to diagnose and program Cat engines and machines.

Gearbox Module

A gearbox module is a self-contained unit consisting of gears and geartrain that changes the speed and torque of a vehicle's power output.

Synchromizers

Mechanisms in a manual transmission that help the gears to synchronize speeds before engaging, for smoother shifting.

Allison TC10

A 10-speed fully automatic transmission designed by Allison for heavy-duty trucks, offering fuel efficiency and seamless shifting for commercial use.