As of December 31, Year 1, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, Year 2, Gant sold inventory on account for $6,000. Which of the following statements is not true?
A. Gant's current ratio will decrease.
B. Gant's working capital will increase.
C. Gant's quick ratio will increase.
D. None of these answers is correct.
Answer: A
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a. represent a transfer from Retained Earnings to Capital Stock. b. increase the stockholders' equity in the issuing firm. c. are payable on the date they are declared. d. increase the relative book value of an individual's stock holdings.
In the last few decades, ________ has been a preferred way for many organizations to deal with a lack of knowledge about foreign local environments and entry into such markets.
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