Question: How would the quick ratio be affected by a prepayment of $30,000 for fire and liability insurance? a. The quick ratio would decrease. b. The

How would the quick ratio be affected by a prepayment of $30,000 for fire and liability insurance?

a.

The quick ratio would decrease.

b.

The quick ratio would increase.

c.

The quick ratio would not change.

d.

The effect cannot be determined from the information given.

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