Walter Industries' current ratio is 0.5.Considered alone,which of the following actions would increase the company's current ratio?
A)Borrow using short-term notes payable and use the cash to increase inventories.
B)Use cash to reduce accruals.
C)Use cash to reduce accounts payable.
D)Use cash to reduce short-term notes payable.

Question

Quizplus · Accepted Answer

The Answer of Walter Industries' current ratio is 0.5.Considered alone,which of the following actions would increase the company's current ratio?
A)Borrow using short-term notes payable and use the cash to increase inventories.
B)Use cash to reduce accruals.
C)Use cash to reduce accounts payable.
D)Use cash to reduce short-term notes payable.

Walter Industries' Current Ratio Is 0