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A company has just converted a long-term note receivable into a short-term note receivable. The company's acid-test and current ratios are both greater than 1.
A company has just converted a long-term note receivable into a short-term note receivable. The company's acid-test and current ratios are both greater than 1. This transaction will: A) increase the current ratio and decrease the acid-test ratio. B) increase the current ratio and increase the acid-test ratio. C) decrease the current ratio and increase the acid-test ratio. D) decrease the current ratio and decrease the acid-test ratio.
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