Question
Other things held constant, which of the following will not affect the current ratio, assuming an initial current ratio greater than 1.0? May I suggest
Other things held constant, which of the following will not affect the current ratio, assuming an initial current ratio greater than 1.0?
May I suggest that, rather than guessing, if you do not see the solution intuitively you might try to calculate an example? Group of answer choices
a) Fixed assets are sold for cash.
b) Long-term debt is issued to pay off current liabilities.
c) Accounts receivable are collected in full.
d) Cash is used to pay off accounts payable.
e) A bank loan is obtained, and the proceeds are credited to the firm's checking account.
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