Use the Information Below to Answer the Following Questions

question 24

Multiple Choice

Use the information below to answer the following questions:
Unstable Ltd has decided to change its depreciation method from straight-line to reducing balance, with the agreement of its auditors and taxation authorities. As a result, its annual depreciation expense increases by $200,000. The company’s income tax rate is 40%.
-Which of the following could NOT explain a substantial increase in the current ratio?

• A) slow collection of debtors
• B) sale of a major noncurrent asset near year-end
• C) a large prepayment near year-end
• D) a change from LIFO to FIFO.

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Definitions:

Largest Sample

The most extensive or most significant sample size from a set of samples collected for statistical analysis or experimentation.

Healthcare-associated Infections

Infections that patients acquire during the course of receiving treatment for other conditions within a healthcare setting.

SSIs Rate

The occurrence rate of surgical site infections within a health-care setting.

National Average

The mean value of a particular measure calculated across an entire country.