1. Ten years notes payable is issued to pay off accounts payable will c Increase both current ratio and quick ratio Decrease current ratio and increase working capital. Increase current ratio and decrease quick ratio. Decrease current ratio, working capital, and quick ratio. 1. trade accounts receivables are a 2. Cash-Basis Accounting.Revenues and expenses are recognized only when cash is received or payments are made Select one: True False 3. Debt/Equity ratio 50% means the assets of company are funded 1 to 2 by creditors to investors Select one: True False Sve A time interest earned ratio of 0.20 means That the firm will not able on its interest payment The net income is more than interest expense That cash flow exceeds the net income