Question: A company's current ratio is 1 . 5 . If the company uses cash to retire notes payable due within one year, would this transaction

A company's current ratio is

1.5 .

If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio and return on assets ratio?

Question

8

options:

Current Ratio: Decrease; Return on Assets: Decrease

Current Ratio: Decrease; Return on Assets: Increase

Current Ratio: Increase; Return on Assets: Decrease

Current Ratio: Increase; Return on Assets: Increase

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