Bicksler Corporation Has a Current Ratio of 2

Multiple Choice

Bicksler Corporation has a current ratio of 2.0 on July 21 of the current year. On July 22, Bicksler purchased (and received) raw materials on credit from its supplier. Assuming all other things are equal, how will this transaction affect the current ratio of Bicksler?

A) The value of the current ratio will increase.
B) The value of the current ratio will decrease.
C) The value of the current ratio will equal the value of the quick ratio after the purchase.
D) The value of the quick ratio will be greater than the value of the current ratio after the purchase.
E) The value of the current ratio will not change.