Assume an initial current ratio of 1.20 and a debt-to-equity ratio of 1.20. How will the payment of cash for current month salaries expense affect these ratios? Assume an initial current ratio of 1.20 and a debt-to-equity ratio of 1.20. How will the payment of cash for current month salaries expense affect these ratios? No change in the current ratio and no change in the debt-to-equity ratio Decreases the current ratio and no change in the debt-to-equity ratio Decreases the current ratio and increases the debt-to-equity ratio No change in the current ratio and increases the debt-to-equity ratio

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The correct answer is Decreases the current ratio and no change in the debttoequity ratio Explanatio... View the full answer