State the Effect of the Following Transactions on the Current

question 164

Essay

State the effect of the following transactions on the current ratio. Use increase decrease or no effect for your answer.
(a) Collection of an accounts receivable.
(b) Declaration of cash dividends.
(c) Additional stock is sold for cash.
(d) Short-term investments are purchased for cash.
(e) Equipment is purchased for cash.
(f) Inventory purchases are made for cash.
(g) Accounts payable are paid.

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