An increase in which one of the following accounts increases a firm's current ratio without affecting its quick ratio?
A) accounts payable
B) cash
C) inventory
D) accounts receivable
E) fixed assets

Question

Quizplus · Accepted Answer

An increase in inventory increases the current ratio because inventory is a current asset, but it does not affect the quick ratio, which excludes inventory from its calculation.

An Increase in Which One of the Following Accounts Increases