Assume a company's liquidity ratios all are less than 1.0 before it purchases inventory on credit. When it makes the purchase:
A) Its current ratio decreases.
B) Its quick ratio decreases.
C) Its current ratio remains unchanged.
D) Its quick ratio remains unchanged.
Correct Answer:
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Q74: Working capital is equal to:
A) Current assets.
B)
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Q76: Match
-Inventories
A)Current Assets
B)Tangible Assets
C)Investments
D)Intangibles
E)Other
F)Current Liability
G)Long-Term Liability
H)Capital Stock
I)Retained Earnings
J)Item
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Q79: The following partial balance sheet ($ in
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