2A2C GARSTKA AUTO PARTS MUST INCREASE ITS ACID TEST RATIO ABOVE THE C...
28.
CSO: 2A2a
LOS: 2A2c
Garstka Auto Parts must increase its acid test ratio above the current 0.9 level in order to
comply with the terms of a loan agreement. Which one of the following actions is most
likely to produce the desired results?
a.
Expediting collection of accounts receivable.
b.
Selling auto parts on account.
c.
Making a payment to trade accounts payable.
d.
Purchasing marketable securities for cash.