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 a firm's current assets, thus increasing the current ratio. However, since inventory is not considered a part of quick assets, the quick ratio remains unaffected.

An Increase in Which One of the Following Accounts Increases