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Solvent Ltd Has a Quick Ratio of 1

Question 13

Multiple Choice

Solvent Ltd has a quick ratio of 1.2:1 and its current liabilities amount to $200,000. If it purchased $40,000 of inventory on credit, its quick asset ratio would be:


A) higher.
B) unable to be calculated.
C) unaffected by the transaction.
D) lower.

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