Which of the Following Does NOT Change a Firm's Current

question 113

Multiple Choice

Which of the following does NOT change a firm's current ratio?

• A) The firm collects its accounts receivables.
• B) The firm purchases inventory by taking a short-term loan.
• C) The firm pays down its accounts payables.
• D) None of the above.

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Definitions:

Direct Labour

The cost of wages for employees who directly manufacture or produce goods and services.

Raw Materials

The basic materials from which a product is made, often referred to in the context of manufacturing and production industries.

Assemblers

Individuals or machines that put together components to create a finished product.

Partnership

A legal form of business operation between two or more individuals who share management and profits.