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

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Definitions:

Oxygen Levels

The amount of oxygen present in a given environment or substance, often measured to assess air or water quality.

Inorganic Nutrients

Nutrients that do not contain carbon-hydrogen bonds, essential for plant growth, such as nitrogen, phosphorus, and potassium.

Nitrates

Inorganic compounds made of nitrogen and oxygen that are found naturally in the environment but can cause health and environmental issues at high concentrations.

Phosphates

Inorganic chemical compounds used as fertilizers and in various industrial applications, often contributing to water pollution.