Other things held constant, which of the following will not affect the current ratio, assuming an initial current ratio greater than 1.0?
A) Fixed assets are sold for cash.
B) Long-term debt is issued to pay off current liabilities.
C) Accounts receivable are collected.
D) Cash is used to pay off accounts payable.
E) A bank loan is obtained, and the proceeds are credited to the firm's checking account.

Question

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The Answer of Other things held constant, which of the following will not affect the current ratio, assuming an initial current ratio greater than 1.0?
A) Fixed assets are sold for cash.
B) Long-term debt is issued to pay off current liabilities.
C) Accounts receivable are collected.
D) Cash is used to pay off accounts payable.
E) A bank loan is obtained, and the proceeds are credited to the firm's checking account.

Other Things Held Constant, Which of the Following Will Not