A Company with $75,000 in Current Assets,$37,500 in Quick Assets,and

question 159

Multiple Choice

A company with $75,000 in current assets,$37,500 in quick assets,and $45,000 in current liabilities makes a payment of a $3,000 oncurrent 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:

Horticultural Societies

Horticultural societies are communities that rely on the cultivation of plants in gardens using hand tools to sustain their way of life.

Subsistence Pattern

The means by which societies acquire the food necessary for survival, including hunting, gathering, herding, and agriculture.

McDonaldization

The notion that institutions are expected to function in ever more efficient ways, with a high degree of predictability and standardization.

Knowledge-intensive

Relating to industries or activities that heavily rely on professional knowledge or expertise.