If a company has a current ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? Short-term Borrowing $\quad$ Collection of Receivable
a. $\quad$ Increase $\quad$ $\quad$ $\quad$ No effect
b. $\quad$ Increase$\quad$ $\quad$ $\quad$ Increase
c. $\quad$ Decrease$\quad$ $\quad$ $\quad$ No effect
d. $\quad$ Decrease$\quad$ $\quad$ $\quad$ Decrease

Question

If a company has a current ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? Short-term Borrowing $\quad$ Collection of Receivable
a. $\quad$ Increase $\quad$ $\quad$ $\quad$ No effect
b. $\quad$ Increase$\quad$ $\quad$  $\quad$ Increase
c. $\quad$ Decrease$\quad$ $\quad$  $\quad$ No effect
d. $\quad$ Decrease$\quad$  $\quad$ $\quad$ Decrease

Quizplus · Accepted Answer

The Answer of If a company has a current ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? Short-term Borrowing $\quad$ Collection of Receivable
a. $\quad$ Increase $\quad$ $\quad$ $\quad$ No effect
b. $\quad$ Increase$\quad$ $\quad$  $\quad$ Increase
c. $\quad$ Decrease$\quad$ $\quad$  $\quad$ No effect
d. $\quad$ Decrease$\quad$  $\quad$ $\quad$ Decrease

If a Company Has a Current Ratio of 1 \quad Collection of Receivable A

If a Company Has a Current Ratio of 1 $\quad$ Collection of Receivable
A