How Would the Collection of an Account Receivable Affect the Current

question 43

Multiple Choice

How would the collection of an account receivable affect the current ratio and the quick ratio,respectively?

• A)No effect on current ratio;increase in quick ratio
• B)Increase in current ratio;increase in quick ratio
• C)No effect on current ratio;no effect on quick ratio
• D)Decrease in current ratio;decrease in quick ratio

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Definitions:

Personal Contact

Direct interaction between two or more people, typically used in marketing to build relationships with customers or clients.

Online Retailers

Businesses that sell products or services over the Internet to consumers, without having physical storefronts.

Dynamic Billboards

Outdoor advertising structures that leverage digital technology to display changing images or messages to capture viewer attention.

Final Selling Price

The last price at which a product or service is sold to a customer, including all discounts, promotions, and negotiations.