As of December 31, 2013, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, 2014 Gant paid $3,600 on accounts payable. Which of the following statements is incorrect?
A) Gant's quick ratio will increase and its current ratio will decrease.
B) Gant's quick ratio will increase.
C) Gant's working capital will remain the same.
D) Gant's current ratio will increase.
Correct Answer:
Verified
Q24: You are considering an investment in IBM
Q38: The following partial balance sheet is
Q39: Select the incorrect statement regarding net margin.
A)
Q41: Which of the following statements is generally
Q42: The Dennis Company reported net income of
Q45: The Bernard Company provided the following
Q46: Benson Company received cash of $1,000,000 from
Q48: As of December 31, 2013, Gant Corporation
Q55: Accrual accounting requires the use of many
Q58: The accounting concept or principle that is
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