A decrease in which one of the following accounts increases a firm's current ratio as well as its quick ratio?
A)Accounts payable
B)Cash
C)Accounts receivable
D)Inventory
E)Fixed assets

Question

Quizplus · Accepted Answer

A decrease in accounts payable increases both the current ratio and the quick ratio because it reduces current liabilities without affecting current assets or the more liquid assets included in the quick ratio.

A Decrease in Which One of the Following Accounts Increases