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Chavez Chocolates Had a Quick Ratio of 1

Question 56

Multiple Choice

Chavez Chocolates had a quick ratio of 1.74 at year-end 2009.Which of the following would cause the ratio to decrease during 2010?


A) A decrease in both cash and marketable securities.
B) An increase in both cash and marketable securities.
C) An increase in current assets that exceeded the increase in current liabilities.
D) Current assets as a percentage of total assets increased while current liabilities as a percentage of total liabilities and stockholders' equity decreased.

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