a.Indicate the effect of a sale of merchandise on account (on credit)on each of the following items.Assume the selling price exceeds the cost of the inventory.Use "Increase," "Decrease," or "No effect" to express your answer for each,and place your answers in the spaces provided.
$$\begin{array} {| l| r |}
\hline
Curient~ Iatio&\
\hline Quick ~Iatio\
\hline Inventory~ tumover\
\hline Asset~ turnover\
\hline
\end{array}$$
b. Indicate the effect of a payment of an account payable on each of the following items. Assume that the first two ratios exceeded 1.0 before the transaction. Use "Increase," "Decrease," or "No effect" to express your answer for each, and place your answers in the spaces provided.
$$\begin{array} {| l| r |}
\hline Curint ~ratio&\
\hline Quick ~ratio\
\hline Return ~an~ equity\
\hline Receivable ~turnover\
\hline
\end{array}$$

Question

a.Indicate the effect of a sale of merchandise on account (on credit)on each of the following items.Assume the selling price exceeds the cost of the inventory.Use "Increase," "Decrease," or "No effect" to express your answer for each,and place your answers in the spaces provided.
 $$\begin{array} {| l| r |} 
\hline
Curient~ Iatio&\
\hline Quick ~Iatio\
\hline Inventory~ tumover\
\hline Asset~ turnover\
\hline
\end{array}$$ 
b. Indicate the effect of a payment of an account payable on each of the following items. Assume that the first two ratios exceeded 1.0 before the transaction. Use "Increase," "Decrease," or "No effect" to express your answer for each, and place your answers in the spaces provided.
 $$\begin{array} {| l| r |} 
\hline Curint ~ratio&\
\hline Quick ~ratio\
\hline Return ~an~ equity\
\hline Receivable ~turnover\
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of a.Indicate the effect of a sale of merchandise on account (on credit)on each of the following items.Assume the selling price exceeds the cost of the inventory.Use "Increase," "Decrease," or "No effect" to express your answer for each,and place your answers in the spaces provided.
 $$\begin{array} {| l| r |} 
\hline
Curient~ Iatio&\
\hline Quick ~Iatio\
\hline Inventory~ tumover\
\hline Asset~ turnover\
\hline
\end{array}$$ 
b. Indicate the effect of a payment of an account payable on each of the following items. Assume that the first two ratios exceeded 1.0 before the transaction. Use "Increase," "Decrease," or "No effect" to express your answer for each, and place your answers in the spaces provided.
 $$\begin{array} {| l| r |} 
\hline Curint ~ratio&\
\hline Quick ~ratio\
\hline Return ~an~ equity\
\hline Receivable ~turnover\
\hline
\end{array}$$