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.

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. An increase in accounts receivable increases current assets without affecting current liabilities, thus increasing the current ratio.

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