An increase in which one of the following accounts increases a ﬁrm's current ratio without affecting its quick ratio?
A) Accounts payable
B) Cash
C) Inventory
D) Accounts receivable
E) Fixed assets

Question

Quizplus · Accepted Answer

Inventory is included in the current ratio calculation but not in the quick ratio, so an increase in inventory will increase the current ratio without affecting the quick ratio.

An Increase in Which One of the Following Accounts Increases