If the trend of the current ratio is increasing, while the trend of the acid-test ratio is decreasing over a period of time, this could be
a. a warning that the firm is: paying "extra" dividends.
b. purchasing too much treasury stock.
c. carrying excess inventories.
d. depleting its inventories.
e. having trouble collecting its accounts receivables.

c. carrying excess inventories.              

Explanation:

The current ratio of a company is used to measures whether the company has enough of its resources to meet the short-term obligations. It is used to compare an organization's current assets to the current liabilities of it. It is also known as liquidity ratio.

The acid test ratio compares a company's total cash and accounts receivable to the total current liabilities of the company. It is also known as quick ratio.

The current ratio of a company is increasing means the company is having more inventories in stock. This inventories can be considered as assets which is not quickly liquidated.

Hence the correct option is (c).

the earth’s crust is broken into separate pieces called tectonic plates (fig. 7.14). recall that the crust is the solid, rocky, outer shell of the planet. it is composed of two distinctly different types of material: the less-dense continental crust and the more-dense oceanic crust. both types of crust rest atop solid, upper mantle material. the upper mantle, in turn, floats on a denser layer of lower mantle that is much like thick molten tar.

each tectonic plate is free-floating and can move independently. earthquakes and volcanoes are the direct result of the movement of tectonic plates at fault lines. the term fault is used to describe the boundary between tectonic plates. most of the earthquakes and volcanoes around the pacific ocean basin—a pattern known as the “ring of fire”—are due to the movement of tectonic plates in this region. other observable results of short-term plate movement include the gradual widening of the great rift lakes in eastern africa and the rising of the himalayan mountain range. the motion of plates can be described in four general patterns:

collision: when two continental plates are shoved together

subduction: when one plate plunges beneath another (fig. 7.15)

spreading: when two plates are pushed apart (fig. 7.15)

transform faulting: when two plates slide past each other (fig. 7.15)

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