Which Business Transaction Will Affect the Quick Ratio

question 2

Multiple Choice

Which business transaction will affect the quick ratio?

• A) Purchase a fixed asset with money borrowed long term
• B) Liquidate a temporary investment and put the money in a checking account
• C) Sell some inventory and use the cash immediately to buy a fixed asset
• D) Make a payment to a vendor on an account payable

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Definitions:

Caldera

A vast volcanic hollow created by a significant explosion that results in the collapse of the volcano's opening.

Pyroclastic Deposits

Accumulations of volcanic materials, such as ash, tephra, and lava bombs, ejected explosively from a volcano.

Volcanic Mudflows

Volcanic mudflows, also known as lahars, are fast-moving, deadly flows of mud, rocky debris, and water that originate from volcanic eruptions or the melting of snow and ice atop volcanoes.

Composite Volcano

A volcano composed of layers of hardened lava, tephra, and volcanic ash, typically having a steep profile and explosive eruptions.