A Company with $50,000 in Current Assets, $25,000 in Quick

question 154

Multiple Choice

A company with $50,000 in current assets, $25,000 in quick assets, and $30,000 in current liabilities makes a payment of a $1,500 current debt. As a result of this transaction, the current ratio and quick ratio will

• A) both decrease.
• B) increase and decrease, respectively.
• C) both increase.
• D) remain the same and decrease, respectively.

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Definitions:

Legal Defensibility

The capability of a policy, action, or practice to be defended in legal proceedings, typically by demonstrating that it is justified, fair, and compliant with laws.

Trait-Oriented Performance Appraisals

An evaluation method focusing on the individual characteristics of an employee, such as attitudes, personality traits, and behaviors, rather than objective output.

Behavior-Oriented

An approach or methodology that focuses on analyzing and modifying observable and measurable behaviors.

Legal Viewpoint

Legal viewpoint refers to the perspective or approach adopted based on laws and legal considerations, typically concerning rights, obligations, and compliance.