If total current assets and total quick assets (current assets less inventory) exceeded current liabilities. A transaction

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If total current assets and total quick assets (current assets less inventory) exceeded current liabilities. A transaction involving the payment of a short-term note payable would: Select one:

Affect the current ratio and the quick ratio to the same degree.

Affect the quick ratio, but not the current ratio.

Affect the quick ratio to a greater degree than the current ratio.

Affect the current ratio to a greater degree than the quick (acid-test) ratio.

Affect the current ratio, but not the quick ratio

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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Posted Date: May 10, 2021 07:34 AM

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If total current assets and total quick assets (current assets less inventory) exceeded current liabilities. A transaction

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Affects the current ratio to greater degree than quick ratio When current assets and quick ... View the full answer

Intermediate Accounting

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