What Is the Effect of the Payment of an Account

question 1

Multiple Choice

What is the effect of the payment of an account payable on the current ratio and the quick ratio,respectively? (Assume the current ratio was 2.3 times and the quick ratio was 2.1 times before this transaction. )

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

---

Definitions:

Reorganization

The process of changing the structure, operations, or processes of an organization to improve efficiency, adapt to new conditions, or achieve specific goals.

Late 19th Century

The period from 1871 to 1900, marked by significant industrial, social, and political changes globally.

Social Darwinism

A theory that applies the concept of survival of the fittest to human societies, often used to justify political conservatism, imperialism, and racism.

Economic Development

The sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area.