Essay
The following information concerning the current assets and current liabilities of
Mason Company at December 31, 2010, is presented below.
Based on this information, how would the quick ratio be affected if Mason purchased $1,300 of inventory on account?
a. The quick ratio would decrease from 1.30 to 1.21.
b. The quick ratio would not change.
c. The quick ratio would decrease from 1.09 to 1.00.
d. The quick ratio would decrease from 1.09 to 1.21.
Correct Answer:
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Before: ($6,700 + $7,830)/$13,...View Answer
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