A company’s current ratio and its acid-test ratio are both greater than 1. Payment of an...

A company’s current ratio and its acid-test ratio are both greater than 1. Payment of an account payable would:

Multiple Choice

increase the current ratio but the acid-test ratio would not be affected.
increase both the current and acid-test ratios.
increase the acid-test ratio but the current ratio would not be affected.
decrease both the current and acid-test ratios.

Expert Solution

The answer is

B) increase both the current and acid-test ratios.

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ekkarill92 answered 1 year ago

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