Assuming That the Current Ratio Was 1

Multiple Choice

Assuming that the current ratio was 1.6 times and the quick ratio was 1.4 times before this transaction,the entry to record the payment of a previously declared and recorded cash dividend will

A) increase the current ratio and the quick ratio.
B) decrease the current ratio and the quick ratio.
C) increase the current ratio but have no effect on the quick ratio.
D) have no effect on the current ratio or the quick ratio.