Payment of a trade account payable of $64,500 would a.Increase the current ratio but the quick ratio

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Payment of a trade account payable of $64,500 would

a.Increase the current ratio but the quick ratio would not be affected.

b.Increase the quick ratio but the current ratio would not be affected.

c.Increase both the current and quick ratios.

d.Decrease both the current and quick ratios

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt , Eugene F. Brigham

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Posted Date: May 29, 2021 03:15 AM

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Payment of a trade account payable of $64,500 would a.Increase the current ratio but the quick ratio

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Expert Answer:

Option D is correct Would decrease both current ratio and a q... View the full answer

Corporate Finance A Focused Approach

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