AIWMI Exam CCRA-L2 Topic 1 Question 114 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 114
Topic #: 1

If XYZ Ltd. incurs (with purchase and installation of machinery) using cash, which of the following ratios will remain unchanged, if all other things remain constant?

ANone of the three

BAsset Turnover ratio

CCurrent Ratio

DQuick Ratio

Show Suggested Answer

Suggested Answer: C

by Billi at Jul 09, 2025, 01:58 PM

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Lindsey

3 days ago

I'm pretty sure the current and quick ratios would be affected since cash is being used. This is a tricky one!

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Catalina

7 days ago

The asset turnover ratio should remain unchanged, as the machinery purchase would increase both assets and sales proportionately.

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Johnson

4 days ago

A) None of the three

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