An increase in which one of the following will increase a firm's quick ratio without affecting its cash ratio? A. accounts payable B. cash C. inventory D. accounts receivable E. fixed assets
Added by Eric L.
Step 1
A. Accounts payable: This would decrease the quick ratio (since it increases current liabilities) and not affect the cash ratio. So, this is not the correct answer. B. Cash: This would increase both the quick ratio (since it increases current assets) and the Show more…
Show all steps
Your feedback will help us improve your experience
Akash M and 71 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
If all of the company's financial ratios are positive, and in the last year, the company's quick ratio has increased while the current ratio has remained unchanged. Based on this information, then: Select one: - a. Current assets have decreased - b. Accounts payable have increased - c. Inventory has decreased - d. Current assets have increased - e. Inventory has increased
Aparna S.
All of the following accounts would typically be used to calculate the quick ratio except? a. cash. b. equipment. c. accounts payable. d. accounts receivable.
Adi S.
which of the following represents an inflow of cash to my company? a. I pay an account payable b. I decrease my depreciation expense c. my accounts receivable decrease d. I buy back stock issued by my company. d. none of the above
Tsungirirai M.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
100,000+
Students learning Accounting with Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD
