Assuming a Current Ratio of 1

question 96

Multiple Choice

Assuming a current ratio of 1.0,how will the purchase of inventory with cash affect the ratio?

• A)Increase the current ratio.
• B)No change to the current ratio.
• C)Decrease the current ratio.
• D)Could either increase or decrease the current ratio.

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Definitions:

Organizational Chart

A visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication.

Plant Layouts

The arrangement of machinery, equipment, and other industrial facilities within a factory or production site, designed to optimize efficiency and workflow.