Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose a company's quick ratio is 1 . 8 . If the company were to repay some accounts payable using cash, which of the following
Suppose a company's quick ratio is If the company were to repay some accounts payable using cash, which of the following would be TRUE?
Question options:
A
The numerator and denominator would decrease by equal amounts, resulting in a higher quick ratio.
B
The numerator would not change, but the denominator would decrease, resulting in a higher quick ratio.
C
The numerator would decrease by more than the denominator, resulting in a lower quick ratio.
D
The numerator and denominator would decrease by equal amounts, leaving the quick ratio unchanged.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started