Which of the following would help a company improve its quick ratio?
A)Borrowing money on a long-term note just before the end of the accounting period.
B)Shifting resources from long-term assets to supplies and inventory.
C)Shifting obligations from long-term liabilities to short-term liabilities.
D)Acquiring inventory by issuing a long-term note.

Question

Quizplus · Accepted Answer

Borrowing money on a long-term note increases cash, a quick asset, without increasing current liabilities, thus improving the quick ratio.

Which of the Following Would Help a Company Improve Its