Given a Current Ratio of 5 to 3, What Is

question 62

Multiple Choice

Given a current ratio of 5 to 3, what is the effect of paying a supplier within 30 days of the purchase?

• A) The current ratio would increase.
• B) The current ratio would decrease.
• C) The current ratio would remain the same.
• D) Unable to determine.

---

Definitions:

Managerial Accounting

This is a form of accounting that creates financial reports specifically designed to inform the internal decision-making processes of business managers.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Payroll Scheme

A system or plan for managing the process of paying employees, including calculating wages, withholding taxes, and distributing paychecks.

Fraud

An intentional deception made for personal gain or to damage another individual.