What would be the effect on the current ratio if the company paid $10,000 on its accounts payable?
A)The current ratio would increase since it is now greater than 1 to 1.
B)The current ratio would decrease since it is now greater than 1 to 1.
C)This transaction would have no effect on the current ratio.
D)The current ratio would change in the same direction whether the ratio were now greater than or less than 1 to 1.

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The Answer of What would be the effect on the current ratio if the company paid $10,000 on its accounts payable?
A)The current ratio would increase since it is now greater than 1 to 1.
B)The current ratio would decrease since it is now greater than 1 to 1.
C)This transaction would have no effect on the current ratio.
D)The current ratio would change in the same direction whether the ratio were now greater than or less than 1 to 1.

What Would Be the Effect on the Current Ratio If