Indicate Whether Each of the Actions Listed Below Will Immediately

question 38

Essay

Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken.
- $\begin{array}{cccc} & \text { Current ratio } & \text { Acid-test ratio } & \text { Total debt-to-equity ratio } \\\text { Purchase of inventorv on account } \end{array}$

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Definitions:

Behaviorists

Psychologists who focus on observable behaviors and the ways in which learning occurs through the associations between stimuli and responses.

Introspection

The examination or observation of one's own emotional and mental processes.

Dismissed

The act of being sent away or rejected, often used in legal, professional, or educational contexts to indicate termination or exclusion.

Observable Behavior

Actions or reactions of an individual that can be seen or measured directly, without needing to infer internal states or processes.