If the quick ratio has been increasing over the past several years,which of the following would cause the ratio to continue to increase?
A)An increase in accounts payable.
B)An increase in inventories.
C)An increase in short-term borrowings.
D)A decrease in taxes payable.

Question

Quizplus · Accepted Answer

The decrease in the denominator (taxes payable), would cause the quick ratio to increase.

If the Quick Ratio Has Been Increasing Over the Past