Purvis Corp.wants to increase its current ratio from the present level of 1.5 when it closes the books next week.The action of __________ will have the desired effect.
A) payment of current payables from cash
B) sales of current marketable securities for cash
C) write down of impaired assets
D) delay of next payroll
E) none of these

Question

Quizplus · Accepted Answer

Payment of current payables from cash will reduce current liabilities and increase current assets, thereby increasing the current ratio.