Assume the Current Ratio Is 3 to 4

question 87

Multiple Choice

Assume the current ratio is 3 to 4.Purchases of inventory on account would cause the current ratio to

• A)increase.
• B)decrease.
• C)be unchanged since the effects offset each other.
• D)be unchanged since it has no effect on any current accounts.

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Definitions:

Security Risks

Potential threats that could result in unauthorized access, damage, or destruction to an organization's assets, including data, systems, and physical property.

Extraversion

A personality trait characterized by outgoingness, high energy, and positive emotions towards social interactions and activities.

Farsighted Leader

A leader capable of anticipating future trends and preparing accordingly.

Long-Range Implications

The far-reaching effects or consequences of actions or decisions, potentially extending over a lengthy period into the future.