In 20X3, C Co

Multiple Choice

In 20X3, C Co. reported a quality of earnings ratio of 1.60. In 20X2 and 20X1 the ratio was .97 and .98 respectively. Which of the following was the most likely cause of the large increase in the ratio?

A) An increase in current assets such as receivables and inventory.
B) An increase in trade payables and accrued liabilities.
C) An increase in sales revenue while net earnings remained the same.
D) A decrease in expense while net earnings remained the same.