Which of the following would help a company improve its quick ratio without necessarily lowering the liability risk to a creditor?
A)Borrowing money just before the end of the accounting period.
B)Shifting resources from long-term assets to short-term assets.
C)Shifting obligations from long-term liabilities to short-term liabilities.
D)All of the above.

Question

Quizplus · Accepted Answer

Shifting resources from long-term assets to short-term assets would increase the quick ratio without affecting the liability risk to a creditor. Borrowing money just before the end of the accounting period and shifting obligations from long-term liabilities to short-term liabilities both increase the company's liability risk to a creditor, and are not optimal solutions.

Which of the Following Would Help a Company Improve Its