Question: When the Current Ratio is 2 , and if there is an equal decrease both in current assets and in current liabilities, this would result

When the Current Ratio is 2, and if there is an equal decrease both in current assets and in current liabilities, this would result in:
A. No change in Current Ratio
B. Increase in Current Ratio
C. Decrease in Current Ratio
D. Current Ratio would double
E. Current Ratio decrease by half

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

this page shows what is required and the instructions wanted from the auto nation financial statement I provided thanks the image is very clear I took photos several times , my phone is very old and...

Q:

There are 4 stages in the life cycle of a company, and these are reflected in the Companys cash flows. What stage is characterized by low levels of operating cash flows and higher levels of cash...

Q:

common size income statement Prepare a spreadsheet with common size income statements for 2019 and 2018 fiscal years. You do not need to do 2017. please prepare the income statement nothing else can...

Q:

Analysis should include the following: An eye-ball assessment of the changes in Cokes financial statements between 2006 and 2016e.g., overall growth in assets, revenues, equity, debt, etc. Analysis...

Q:

Tranaction/Event Working Capital = Current Assets - Current Liabilities Current Ratio = Current Assets / Current Liabilities Acid-test ratio = Current assets classified as "quick" assets / current...

Q:

Congratulations! Tony has promoted you! Now, he is going to take your analysis and information into account. He wants your input and information. Discuss the following: Given all of the financial...

Q:

d For each of the items below, explain the impact, does the action (1) increase, (D) decrease, or cause (NC) no change in the Current Ratio, Quick Ratio and Cash Ratio. (3 points) Where: Current...

Q:

Question 1 (2 points) Balance Sheet Current assets Cash 870,000 Acc receivable not given Inventories 1,050,000 Fixed assets 3,220,000 TOTAL ASSETS 6,200,000 Current liabilities Ace payable not given...

Q:

HI, I need help, I have an assignment about Financial Analysis which we have just starting to learn in class! I finally got all the number (I think) and now I need to do the analysis but I am lost. I...

Q:

Thomas L. Wheelen, J. David Hunger, Alan N. Hoffman and Charles E. Bamford (2018) Strategic Management and Business Policy: Globalization, Innovation and Sustainability 15th Edition. Pearson Print...

Q:

Consider taking a random sample of size 14 from the population of students at a certain college and measuring the diastolic blood pressure each of the 14 students. In the context of this setting,...

Q:

What are the factors that influence the decision regarding the manner in which a particular subsidiary should be treated for purposes of performance evaluation (e.g., as a cost center or a profit...

Q:

The maximum population rate of deviation from a prescribed control that the auditors will accept without modifying the planned assessment of control risk. Risk of accessing control risk too low...

Q:

The lessons learned in the aftermath of 9/11 established a critical turning point for the Homeland Security of America. Focus on the statement, "The American people will never forget the events which...