7. Which of the following will cause an increase in cash? a. Increase in A/P b. Decrease in A/P c. Decrease in inventory d. Answers a and c e. Answers b and c Answer 8. Which of the following will cause a decrease in cash? a. Decrease in A/P b. Increase in A/P c. Increase in inventory d. Answers a and c e. Answers b and c Answer 9. Which of the following describes a bank balance sheet? a. Deposits are a liability b. Deposits are an asset c. Cash is an asset called reserves d. Answers a and c e. Answers b and c Answer 10. Which of the following is true regarding financial ratios? a Current ratio must be smaller than the quick ratio b Current ratio must be bigger than the quick ratio c ROA must be smaller than ROE d Answers a and c e. Answers b and c