CMA Study Group

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  • 1.  CMA Pop Quiz – Q187

    Posted 07-07-2017 09:18 AM

    Both the current ratio and the quick ratio for Spartan Corporation have been slowly decreasing.  For the past two years, the current ratio has been 2.3 to 1 and 2.0 to 1.  During the same time period, the quick ratio has decreased from 1.2 to 1 to 1.0 to 1.  The disparity between the current and quick ratios can be explained by which one of the following?

     

    1. The current portion of long-term debt has been steadily increasing.
    2. The cash balance is unusually low.
    3. The accounts receivable balance has decreased.
    4. The inventory balance is unusually high.


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    Morgan Greenleaf
    Marketing and Social Meda Manager
    IMA
    Montvale NJ
    United States
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