Assuming a current ratio of 1 4 and an acid test ratio of 0 78, how will the cash payment of Prepaided Insurance affect each ratio Increase the current ratio and increase the acid test ratio No change to the current ratio and decrease the acid test ratio Decrease the current ratio and decrease the acid test ratio Decrease the current ratio and increase the acid test ratio None of above

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Assuming a current ratio of 1.4 and an acid-test ratio of 0.78, how will the cash payment of Prepaided Insurance affect each ratio? Increase the

Assuming a current ratio of 1.4 and an acid-test ratio of 0.78, how will the cash payment of Prepaided Insurance affect each ratio?

Increase the current ratio and increase the acid-test ratio
No change to the current ratio and decrease the acid-test ratio
Decrease the current ratio and decrease the acid-test ratio
Decrease the current ratio and increase the acid-test ratio
None of above

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