If the Current Ratio Is 2,what Will Be the Effect

question 25

Multiple Choice

If the current ratio is 2,what will be the effect of the payment of a cash dividend,which was recorded as a liability on the date of declaration?

• A)An increase in the current ratio.
• B)A decrease in the current ratio.
• C)No effect on the current ratio.
• D)A decrease in the cash coverage ratio.

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