All Else Being Equal, Which of the Following Will Decrease

question 21

Multiple Choice

All else being equal, which of the following will decrease a firm's current ratio?

• A) A decrease in the net fixed assets
• B) A decrease in depreciation expense
• C) An increase in accounts payable
• D) None of the above

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Definitions:

Belief Perseverance

The tendency to maintain one's belief even after it has been discredited by new evidence.

Additional Evidence

Supplementary information or data that supports or clarifies an argument, claim, or hypothesis.

Belief Perseverance

A cognitive phenomenon where individuals stick to their initial beliefs even when faced with new, contradictory evidence.

Unanimous Verdict

A legal decision where all jurors agree on the verdict in a court case.