Question
Among the following five scenarios, which is the one which will see an increase in current ratio? Multiple Choice Firm A buys $1,000 worth of
Among the following five scenarios, which is the one which will see an increase in current ratio?
Multiple Choice
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Firm A buys $1,000 worth of inventory with cash.
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Firm B sells its merchandise for $1,000.
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Firm C has a current ratio of 0.9 and pays $1,000 in accounts payable.
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Firm D issues $1,000 in bonds.
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Both B and D will increase current ratio.
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Practical Auditing
Authors: Ernest Evan Spicer, Ernest Charles Pegler
17th Edition
0406678014, 9780406678010
