Zack Company Has a Current Ratio of 2 A)Option a
B)Option B
C)Option C
D)Option D

Multiple Choice

Zack Company has a current ratio of 2.5. What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital? $\begin{array} { l c c } & \text { Acid-Test Ratio } & \text { Working Capital } \\\text { A) } & \text { decrease } & \text { decrease } \\\text { B) } & \text { decrease } & \text { no effect } \\\text { C) } & \text { no effect } & \text { decrease } \\\text { D) } & \text { no effect } & \text { no effect }\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D