Other things held constant,an increase in ________ will decrease the current ratio.Assume an initial current ratio greater than 1.0.
A)accruals
B)ordinary shares
C)average collection period
D)cash

Question

Quizplus · Accepted Answer

An increase in accruals, which are current liabilities, will decrease the current ratio if the initial current ratio is greater than 1.0, as it increases the denominator of the ratio.

Other Things Held Constant,an Increase in ________ Will Decrease the Current