Answer: b. Its quick ratio decreases.
Explanation:
The Quick ratio is calculated net of inventory to determine if a company can cover its current liabilities with its more liquid current assets. The formula is to subtract Inventory from the Current Assets and then divided that by the Currency liabilities.
The Quick ratio will be less than before because the number of current assets will not change but the amount of current liabilities will change as the goods were purchased on credit. With a larger denominator, the resultant ratio will be less than before.
Accounting adds and subtracts numbers billing etc.
Bookkeeping just organizes and stores imformation.
Answer:
Demand and supply
Explanation:
Demand and supply are the two factors which effect the equilibrium of price. If demand increases and the supplies remains constant the price will increase. On the other hand when demand decrease and the supplies remains constant the price will fall. So these two factors effect the Equilibrium price of a good.