A firm wants to strengthen its financial position. Which of the following actions would increase its quick ratio?
A. Offer price reductions along with generous credit terms that would (1) enable the firm to sell some of its excess inventory and (2) lead to an increase in accounts receivable.
B. Issue new common stock and use the proceeds to increase inventories.
C. Speed up the collection of receivables and use the cash generated to increase inventories.
D. Use some of its cash to purchase additional inventories.
E. Issue new common stock and use the proceeds to acquire additional fixed assets.
Answer: A
You might also like to view...
HR self-service systems can reduce HR and payroll-related operational costs up to 85%
Indicate whether the statement is true or false
Jaime has a basis in her partnership interest of $50,000 when the partnership distributes (in an operating distribution) two parcels of land to Jaime, each valued at $30,000. Prior to the distribution, the partnership's basis in parcel A is $40,000 and the basis in parcel B is $20,000. Jaime allocates $20,000 of basis to parcel A and $30,000 of basis to parcel B.
Answer the following statement true (T) or false (F)
What is a recommended method for MPR professionals to find speaking engagements for a firm's experts?
A) placing advertisements in national magazines B) soliciting potential customers for opportunities C) posting availability schedules on social networking sites D) contacting representatives of local trade organizations E) including press pick-ups in media kits
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"?
A) A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. B) Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. C) A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. D) Interest of 10 percent will be charged if invoice is paid after two days.