Which Ratio Will Increase When Accounts Payable Is Not Recorded

question 4

Multiple Choice

Which ratio will increase when accounts payable is not recorded?

• A) Accounts payable/Inventory
• B) Quick assets/Current liabilities
• C) Accounts payable/COGS
• D) Accounts payable/Total liabilities

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Definitions:

Exchange

A platform or marketplace where goods, services, or securities are traded between parties.

Time Utility

The value added to products or services by making them available when they are needed.

Good Or Service

Products offered in the market that can be either tangible (goods) or intangible (services) to satisfy consumer needs or wants.

Customers Want

The desires or needs that consumers express, which can influence their buying behavior and decisions.