current ratio

fenil 13 April 2020 at 13:18 PM

All other things held constant, which of the following transactions will increase a firm’s current ratio if the current ratio is greater than one? a) Accounts receivable are collected and the funds received are deposited in the firm’s checking account. b) Accounts payable are paid with funds from the cash account. c) Fixed assets are purchased from the cash account. d) A cash dividend is declared.

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FACULTY 17 May 2020 at 01:31 PM

Accounts payable are paid with funds from the cash account.(option C)

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