AIndicate the Effect of a Purchase of Merchandise on Account

question 30

Essay

a.Indicate the effect of a purchase of merchandise on account (on credit)on each of the following items.Use "Increase," "Decrease," or "No effect" to express your answer for each,and place your answers in the spaces provided.Assume that the first two ratios exceeded 1.0 before the transaction.
b.Indicate the effect of a payment of an account payable on each of the following items.Assume that the first two ratios exceeded 1.0 before the transaction.Use "Increase," "Decrease," or "No effect" to express your answer for each,and place your answers in the spaces provided.

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