Ferris Corp. wants to increase its current ratio from the present level of 1.5 when it closes the books next week. The action of __________ will have the desired effect.
A) payment of current payables from cash
B) sales of current marketable securities for cash
C) write-down of impaired assets
D) delay of next payroll
E) None of the options are correct.

Question

Quizplus · Accepted Answer

Payment of current payables from cash will reduce current liabilities and increase current assets, thereby increasing the current ratio.