If a Company Wants to Increase Its Quick Ratio,it Should

question 91

Multiple Choice

If a company wants to increase its quick ratio,it should consider:

• A)buying equipment on account.
• B)paying off long-term notes payable.
• C)issuing long-term notes payable.
• D)collecting an accounts receivable.

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Definitions:

Full Accrual

Refers to an accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transactions occur.

PSAB

Public Sector Accounting Board, which sets accounting standards for public sector entities in Canada.

Revenue Measured

The process of determining the monetary amounts at which the revenues of a company are recognized in the financial statements.

Tax Concessions

Financial incentives or reductions in tax rates provided by governments to encourage certain business activities or investments.