As of December 31, 2012, Grove Corporation Had a Current

question 34

Multiple Choice

As of December 31, 2012, Grove Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, 2012 Grove sold inventory on account for $6,000 and recorded cost of goods sold of $4,100. Which of the following statement is incorrect?

• A)Grove's current ratio will decrease.
• B)Grove's quick ratio will increase.
• C)Grove's working capital will decrease.
• D)A and C are both incorrect statements

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Definitions:

Official Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country, used to identify individuals and households in need of assistance.

Minimum Food Bundle

The minimum set of food items required to meet the nutritional needs of an individual or family, often used in assessments of poverty and food security.

Department of Agriculture

A government body responsible for developing and executing policies on farming, agriculture, and food.

African-Americans

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.