Multiple Choice
What would be the effect on the current ratio if the company paid $10,000 on its accounts payable?
A) The current ratio would increase since it is now greater than 1 to 1.
B) The current ratio would decrease since it is now greater than 1 to 1.
C) This transaction would have no effect on the current ratio.
D) The current ratio would change in the same direction whether the ratio were now greater than or less than 1 to 1.
Correct Answer:
Verified
Correct Answer:
Verified
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