How Would the Collection of an Account Receivable Affect the Current

question 5

Multiple Choice

How would the collection of an account receivable affect the current ratio and the quick ratio,respectively?

• A) Increase in current ratio; increase in quick ratio
• B) No effect on current ratio; no effect on quick ratio
• C) No effect on current ratio; increase in quick ratio
• D) Decrease in current ratio; decrease in quick ratio

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