The acid-test ratio of a firm would be unaffected by which of the following?
A) Inventories are sold on a short-term credit basis.
B) Common stock is sold and the money is invested in marketable securities.
C) Inventories are sold for cash.
D) Accounts payable are reduced by obtaining a short-term loan.
D
Business
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A mortgage payable is a long-term debt that is backed with a security interest in specific property
Indicate whether the statement is true or false
Business
The declaration and payment of a dividend by a corporation causes:
A) A decrease in assets and a decrease in retained earnings B) A decrease in assets and a decrease in common stock C) A decrease in assets and an increase in retained earnings D) A decrease in assets and a decrease in liabilities. E) None of the above
Business