A company's current ratio and acid-test ratios are both greater than 1. If obsolete inventory is written off, this would:

a.Decrease the acid-test ratio

b.Increase the acid-test ratio

c.Increase net working capital

d.Decrease the current ratio

We can decrease the cash conversion cycle by:

a.Paying our bills sooner and taking any available discounts

b.Allowing our customers to schedule their payments to us

c.Buying inventory closer to actual production or shipment dates

d.Holding cash receipts until we have a substantial deposit, saving our accounting clerk's time

Replacement cost accounting (current cost method) will usually:

a.Increase assets, decrease net income before taxes, and lower the return on equity

b.Increase assets, increase net income before taxes, and increase the return on equity

c.Decrease assets, increase net income before taxes, and increase the return on equity

d.None of these apply