Westcott,Inc.has the following information from its accounting records:

If Westcott uses cash of $5,000 to pay a current liability,its:
A) current ratio increases and its debt-to-assets ratio increases
B) current ratio increases and its debt-to-assets ratio decreases
C) current ratio decreases and its debt-to-assets ratio increases
D) current ratio decreases and its debt-to-assets ratio decreases

Question

Westcott,Inc.has the following information from its accounting records:

If Westcott uses cash of $5,000 to pay a current liability,its:
A) current ratio increases and its debt-to-assets ratio increases 
B) current ratio increases and its debt-to-assets ratio decreases 
C) current ratio decreases and its debt-to-assets ratio increases 
D) current ratio decreases and its debt-to-assets ratio decreases

Quizplus · Accepted Answer

The Answer of Westcott,Inc.has the following information from its accounting records:

If Westcott uses cash of $5,000 to pay a current liability,its:
A) current ratio increases and its debt-to-assets ratio increases 
B) current ratio increases and its debt-to-assets ratio decreases 
C) current ratio decreases and its debt-to-assets ratio increases 
D) current ratio decreases and its debt-to-assets ratio decreases

Westcott,Inc.has the Following Information from Its Accounting Records