If the Current Ratio Is 2,the Payment of a Cash

question 5

Multiple Choice

If the current ratio is 2,the payment of a cash dividend,which was recorded as a liability on the date of declaration,will result in which of the following?

• A)An increase in the current ratio.
• B)A decrease in the current ratio.
• C)No effect on the current ratio.
• D)A decrease in the cash coverage ratio

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