If current assets exceed current liabilities, prepaying an expense on the last day of the year will:
A. decrease the current ratio.
B. increase the current ratio.
C. increase the acid-test ratio.
D. decrease the acid-test ratio.
Answer: D
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Jeong Company incurs both fixed and variable production costs. Assuming that production is within the relevant range, if volume goes up by 20%, then the total costs would ________.
A) increase by 20% B) remain the same C) increase by an amount less than 20% D) decrease by 20%
If sales volume expands materially late in the year, days' sales in receivable will be:
a. unaffected by the choice of a natural business year over a calendar year-end. b. understated in one year and overstated in the following period. c. understated. d. overstated.
Wages in developing markets can be volatile and spike dramatically. The United States can be ________ on a wage basis if its average wages decline.
A. more competitive B. more risky C. less competitive D. more volatile
Explain the phenomenon of globalization