Zack Company Has a Current Ratio of 2

question 65

Multiple Choice

Zack Company has a current ratio of 2.5. What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Intellectual Assets

Intangible resources of an organization such as patents, trademarks, business methodologies, and trade secrets that provide a competitive edge.

Workplace Knowledge

The valuable information, skills, and expertise that employees possess within the context of their job and organization.

Organizational Positions

Specific roles or job titles within an organization, each with its own set of responsibilities and expectations.