Question
1. A transaction that will increase the quick ratio but cause the current ratio to decline is: a Short-term borrowing. b Investing cash in plant
1.A transaction that will increase the quick ratio but cause the current ratio to decline is:
aShort-term borrowing.
bInvesting cash in plant assets.
cSale of inventory at a price below cost.
dCollection of an account receivable.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
