When examining whether a company has under recorded accounts payable, each of the following ratios will be helpful except:
A) Acid-test ratio
B) Accounts Payable ÷ Purchases
C) Accounts Payable ÷ Cost of Goods sold
D) Unearned revenue ÷ Accounts Payable
E) Current Ratio

Question

Quizplus · Accepted Answer

D: The other ratios would be helpful in determining whether a company is under recording its accounts payable.

When Examining Whether a Company Has Under Recorded Accounts Payable