When Examining Whether a Company Has Under Recorded Accounts Payable

Multiple Choice

When examining whether a company has under recorded accounts payable, each of the following ratios will be helpful except:

A) Acid-test ratio
B) Accounts Payable ÷ Purchases
C) Accounts Payable ÷ Cost of Goods sold
D) Unearned revenue ÷ Accounts Payable
E) Current Ratio