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Jonathan Swift Movers Had the Following Current Ratios 2

Question 129

Multiple Choice

Jonathan Swift Movers had the following current ratios 2.2:1; 2.5:1; 2.8:1 for 2017, 2018, 2019 respectively. Which of the following statements most correctly depicts the change in liquidity?


A) Liquidity is improving from selling office supplies.
B) Liquidity is improving due to accounts receivable being collected more quickly.
C) Liquidity is deteriorating due to purchasing equipment.
D) Liquidity is improving due to cash received in exchange of a long-term note payable.

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