A Company's Current Ratio Is Greater Than 1

question 288

Multiple Choice

A company's current ratio is greater than 1. Purchasing raw materials on credit would:

• A)increase the current ratio.
• B)decrease the current ratio.
• C)increase net working capital.
• D)decrease net working capital.

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Definitions:

Reinforcing

The process of strengthening a behavior by providing a consequence that the individual finds rewarding.

Punishing

The act of imposing a penalty or negative consequence for an undesirable action or behavior, with the intent of reducing or eliminating that behavior.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Respondent Behavior

Behavior that is elicited by a specific stimulus and is part of the classical conditioning process, such as salivating when smelling food.