Which of the following could explain a decrease in the quick ratio?
A) Issue of share capital
B) A change in the depreciation method used
C) Slow-moving inventory
D) Increase in accounts payable

Question

Quizplus · Accepted Answer

An increase in accounts payable will increase current liabilities, which will decrease the quick ratio. A, B, and C do not directly affect the quick ratio.

Which of the Following Could Explain a Decrease in the Quick