Other Things Held Constant, an Increase in ________ Will Decrease

question 86

Multiple Choice

Other things held constant, an increase in ________ will decrease the current ratio. Assume an initial current ratio greater than 1.0.

• A) accruals
• B) common stock
• C) average collection period
• D) cash

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Definitions:

Preschool

An educational establishment or learning environment for children prior to the commencement of compulsory education at primary school.

Engage

To participate or become involved in an activity or interaction with others.

Freud

Known as the father of psychoanalysis, he developed theories about the unconscious mind, the structure of personality, and the role of sexuality in human psychology.

Differentiate

The act of distinguishing or distinguishing between two or more things, often used in mathematics to describe the process of finding a derivative.