A company has a current ratio of 2.0 and a quick ratio of 1.5.Assume the company then paid previously declared dividends in the amount of $20,000.Which of the following statements is true?
A) The current ratio will decrease and the quick ratio will decrease.
B) The current ratio will decrease and the quick ratio will not change.
C) The current ratio and the quick ratio will not change.
D) The current ratio will increase and the quick ratio will increase.
Correct Answer:
Verified
Q117: Use the information above to answer the
Q118: A debt to assets ratio of .50
Q119: Use the information above to answer the
Q120: Which of the following is closest to
Q121: A company had current assets of $550,000
Q123: Cost of goods sold divided by average
Q124: A company has a debt to assets
Q125: Net income divided by Net sales is
Q126: Which of the following ratios does not
Q127: Use the information above to answer the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents