If Management Decided to Create a Hidden Reserve to Make

Multiple Choice

If management decided to create a hidden reserve to make the company look more profitable by increasing the allowance for uncollectibles, what would be the effect on the current ratio and quick ratio?
$\begin{array}{ll}&\text { Current } & \text { Quick } \\&\text { Ratio } & \text { Ratio } \\A.&\text { Increase } & \text { Increase } \\B.&\text { Increase } & \text { Decrease } \\C.&\text { Decrease } & \text { Increase } \\D.&\text { Decrease } & \text { Decrease }\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D