Other Things Held Constant, Which of the Following Will Not

Multiple Choice

Other things held constant, which of the following will not affect the quick ratio? (Assume that current assets equal current liabilities.)

A) Fixed assets are sold for cash.
B) Cash is used to purchase inventories.
C) Cash is used to pay off accounts payable.
D) Accounts receivable are collected.
E) Long-term debt is issued to pay off a short-term bank loan.