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:

Accommodation

The process of adjusting cognitive schemas to incorporate new information, a concept critical in developmental psychology, or the provision of housing or lodging.

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The process by which the eye's lens adjusts its curvature to focus light on the retina, enabling clear vision at various distances.

Receptor Cells

Specialized cells that respond to specific chemical or physical stimuli and convey signals to the nervous system.

Light Energy

A form of electromagnetic radiation visible to the human eye, responsible for the sense of sight and driving photosynthesis in plants.