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:

Working Memory Span

The capacity of working memory, indicating the amount of information one can hold and manipulate in mind for short periods.

3-Year-Old

A reference to children around the age of three, often used in developmental psychology to discuss milestones and behavioral patterns.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially in terms of word order and punctuation.

Pivot Grammar

A simplified grammatical structure often observed in early child speech, allowing for the construction of sentences around a key pivotal word.