A corporation wants to increase its current ratio from its present level of 1.2 before it ends the fiscal year. The action having the desired effect is:
A)delaying the next payroll.
B)writing down impaired assets.
C)selling furniture for cash.
D)selling current marketable securities at cash for their book value.

Question

Quizplus · Accepted Answer

Selling furniture for cash increases current assets without increasing current liabilities, thus improving the current ratio.

A Corporation Wants to Increase Its Current Ratio from Its