The Current Ratio for a Firm Is 3

question 8

Multiple Choice

The current ratio for a firm is 3.68. If the firm then purchases supplies on account, the current ratio will:

• A) Decrease
• B) Increase
• C) Be unaffected
• D) Insufficient information

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Definitions:

Shape Constancy

A perceptual phenomenon where the perceived shape of an object remains constant despite changes in the viewing angle or distance.

Proximity

The spatial or psychological closeness or nearness between people or objects, which can influence various aspects of human behavior and perception.

Timbre

The quality of a sound that distinguishes it from others, even when they have the same pitch and loudness.

Wavelength

The distance between consecutive crests of a wave, typically used to measure the length of waves in the spectrum of electromagnetic radiation.