Multiple Choice
A company has a current ratio of 2.0 and a quick ratio of 1.5.Assume the company then paid previously declared dividends in the amount of $20,000.Which of the following statements is true?
A) The current ratio will decrease and the quick ratio will decrease.
B) The current ratio will decrease and the quick ratio will not change.
C) The current ratio and the quick ratio will not change.
D) The current ratio will increase and the quick ratio will increase.
Correct Answer:
Verified
Correct Answer:
Verified
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