Which of the following events will cause a company’s current ratio to decrease? a.The sale of inventory for credit (accounts receivable) b.Issuing stock for cash c.The sale of inventory for cash d.Paying off long-term debt with cash

The current ratio is calculated by taking all the current affairs and the current cavities of the…

Answered: Which of the following events will…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The most stringent measure of the liquidity status of a business firm. a. Current ratio b. Quick Ratio c. Cash Ratio d. Average collection period
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	a.	The sale of inventory for credit (accounts receivable)
	b.	Issuing stock for cash
	c.	The sale of inventory for cash
	d.	Paying off long-term debt with cash

Which of the following events will cause a company’s current ratio to decrease? a. The sale of inventory for credit (accounts receivable) b. Issuing stock for cash c. The sale of inventory for cash d. Paying off long-term debt with cash