A Transaction That Will Increase the Quick Ratio but Cause

question 106

Multiple Choice

A transaction that will increase the quick ratio but cause the current ratio to decline is:

• A) Short-term borrowing.
• B) Investing cash in plant assets.
• C) Sale of inventory at a price below cost.
• D) Collection of an account receivable.

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Definitions:

Slope Coefficient

In linear regression, it represents the expected change in the dependent variable for a one-unit change in the independent variable.

Dummy Variables

Variables created to represent attributes with two or more distinct categories or levels, used in regression analysis.

Nominal Variable

A type of variable with data that can be categorized but not ranked or ordered numerically.

Regression Analysis

A set of statistical processes for estimating the relationships among variables, often to predict a dependent variable from one or more independent variables.