Assuming a current ratio of 1.0 and an acid-test ratio of 0.75,how will the purchase of inventory with cash affect each ratio?
A) Increase the current ratio and increase the acid-test ratio.
B) No change to the current ratio and decrease the acid-test ratio.
C) Decrease the current ratio and decrease the acid-test ratio.
D) Increase the current ratio and decrease the acid-test ratio.
Correct Answer:
Verified
Q20: Horizontal analysis examines trends in a company:
A)Over
Q21: Assume a company's current ratio and acid-test
Q22: Stealth Company's 2013 average days in inventory
Q23: The debt to equity ratio is:
A)0.33.
B)0.77.
C)1.17.
D)1.30.
Q24: The acid-test ratio is:
A)The liquidity ratio divided
Q26: The acid-test ratio is:
A)0.25.
B)0.88.
C)1.17.
D)1.58.
Q27: Stealth Company's 2013 debt to equity ratio
Q28: HHF's debt to equity ratio is:
A)0.75.
B)1.13.
C)0.38.
D)1.80.
Q29: Stealth Company's 2013 receivables turnover ratio is:
A)2.85.
B)4.70.
C)5.00.
D)10.63.
Q30: HHF's times interest earned ratio is:
A)3.47.
B)1.72.
C)2.47.
D)10.0.
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents