Assume a company's current ratio and acid-test ratio are less than 1.0 before it purchases inventory on credit.When it makes the purchase:
A) Its current ratio decreases.
B) Its acid-test ratio decreases.
C) Its current ratio remains unchanged.
D) Its acid-test ratio remains unchanged.
Correct Answer:
Verified
Q16: When using vertical analysis,we express income statement
Q17: Which of the following ratios is most
Q18: Which of the following is a positive
Q19: Which of the following is an example
Q20: Horizontal analysis examines trends in a company:
A)Over
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
Q25: Assuming a current ratio of 1.0 and
Q26: The acid-test ratio is:
A)0.25.
B)0.88.
C)1.17.
D)1.58.
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