An Increase in Current Liabilities Will Have Which One of the Following

question 74

Multiple Choice

An increase in current liabilities will have which one of the following effects, all else held constant? Assume all ratios have positive values.

• A) Increase in the cash ratio
• B) Increase in the net working capital to total assets ratio
• C) Decrease in the quick ratio
• D) Decrease in the cash coverage ratio
• E) Increase in the current ratio

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