Considered Alone,which of the Following Would Increase a Company's Current

question 60

Multiple Choice

Considered alone,which of the following would increase a company's current ratio?

• A) An increase in net fixed assets.
• B) An increase in accrued liabilities.
• C) An increase in notes payable.
• D) An increase in accounts receivable.
• E) An increase in accounts payable.

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Definitions:

Current Ratio

A financial metric indicating a firm's capability to settle short-term debts, determined by dividing its current assets by its current liabilities.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Sales On Account

Transactions where goods or services are sold with payment to be received at a later date, often documented through invoices.

Cost Of Goods Sold

Direct expenditures linked to the making of products that a company offers for sale.