As of December 31,Year 1,Gant Corporation Had a Current Ratio

question 102

Multiple Choice

As of December 31,Year 1,Gant Corporation had a current ratio of 1.29,quick ratio of 1.05,and working capital of $18,000.The company uses a perpetual inventory system and sells merchandise for more than it cost.On January 1,Year 2,Gant sold inventory on account for $6,000.Which of the following statements is not true?

• A)Gant's current ratio will decrease.
• B)Gant's quick ratio will increase.
• C)Gant's working capital will increase.
• D)None of these answers is correct.

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Definitions:

Neuroendocrine System

Those endocrine glands that are controlled by and interact with the nervous system.

Glands

Organs in the body that synthesize substances such as hormones or sweat, secreting them for use throughout the body or excreting them for removal.

Allostatic Load

The wear and tear on the body accumulated through chronic stress, significantly impacting physical and mental health.

Physiological Stress

A reaction of the body to a stimulus or environment that disturbs the physical or mental equilibrium, causing strain to the body's systems.