At Year-End 2010,General Tech Reported a Quick Ratio of 2

Multiple Choice

At year-end 2010,General Tech reported a quick ratio of 2.75 and at year-end 2009 it was 3.10.Which of the following is a potential cause of the decrease in this ratio?

A) An increase in accounts payable and a decrease in inventories.
B) A decrease in inventories and an increase in long-term notes payable.
C) A decrease in short-term borrowings and an increase in cash.
D) An increase in accounts payable and a decrease in cash.