When a Company Pays Its Bill from a Plumber for Previous

question 2

Multiple Choice

When a company pays its bill from a plumber for previous services on account:

• A) Its debt to equity ratio always decreases.
• B) Its acid-test ratio always remains unchanged.
• C) Its current ratio always remains unchanged.
• D) Its working capital decreases.

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, and a desire to do a good job, often associated with high performance in workplace settings.

Paying Attention

The act of focusing one's mind actively on a particular stimulus or task, maintaining a state of awareness towards specific details or information.

Tolerance

The willingness or ability to accept and respect differences in opinion, behavior, or beliefs without being judgmental.

Uncertainty

A state or condition where there is a lack of certainty, predictability, or clear understanding about an outcome or situation.