Considered alone, which of the following would increase a company's current ratio?
A) An increase in accounts payable.
B) An increase in net fixed assets.
C) An increase in accrued liabilities.
D) An increase in notes payable.
E) An increase in accounts receivable.

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. An increase in accounts receivable increases the company's current assets without affecting its current liabilities, thus increasing the current ratio.

Considered Alone, Which of the Following Would Increase a Company's