If a Company Uses Cash to Pay Off Some of Its

question 6

Multiple Choice

If a company uses cash to pay off some of its accounts payables, what effect will this have on its liquidity ratios, given that the ratios exceeded 1 before the payoff?

• A)the quick ratio and current ratio will both increase.
• B)the quick ratio and current ratio will both decrease.
• C)the quick ratio will increase but the current ratio will remain unchanged.
• D)the current ratio will increase but the quick ratio will remain unchanged.

---

Definitions:

PowerPoint Presentation

A software application developed by Microsoft that allows users to create, edit, and present slideshows featuring text, images, and multimedia elements.

Handouts

Supplemental documents or items given to support or provide additional information.

Crisis

A critical or tumultuous situation that requires immediate and effective responses to avoid or minimize damage.

Presentation Structure

Presentation Structure refers to the organized framework or order of a presentation, including the introduction, body, and conclusion, designed for optimal audience understanding and engagement.