Assume the Current Ratio Is 2 to 1

question 141

Multiple Choice

Assume the current ratio is 2 to 1. Payment on accrued salaries payable would cause the current ratio to

• A) decrease.
• B) be unchanged since the effects offset one another.
• C) increase.
• D) be unchanged since it has no impact on any current accounts.

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Definitions:

Santa Costanza

An ancient church in Rome, Italy, known for its early Christian architecture and as a notable example of a central plan, domed structure.

Eastern Central-plan Building

A type of architectural structure characterized by a primary central space surrounded by symmetrical areas, common in Byzantine and Orthodox Christian architecture.

Church Plan

The architectural design and layout of a church building, often cruciform in shape to represent Christianity, with distinct sections like the nave, aisles, and choir.

Vineyard Scenes

Artistic representations that depict the activities, landscapes, or environments associated with vineyards and wine production.