If the current ratio is currently greater than 1.0, which one of the following events would increase the current ratio?
A) Purchase of inventory on account
B) Receipt of money from a customer prior to the performance of service
C) Accrual of warranty expense
D) Sale of plant asset at a gain
Correct Answer:
Verified
Q1: Short-term notes payable typically arise because
A)the firm
Q3: Dividends payable typically arise because
A)creditors want a
Q4: Accruing warranty expense will
A)increase the debt/equity ratio.
B)increase
Q5: An employee of Susann Inc. failed two
Q6: One of Tonic Corp's employees invented a
Q7: A liability for a deposit may arise
Q8: If a contingent loss which is expected
Q9: Which one of the following events decreases
Q10: Accounts payable typically arise because
A)cash is received
Q11: Collecting sales taxes from customers always
A)decreases net
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