Assume the current ratio is 3 to 4. Purchases of inventory on account would cause the current ratio to
A) increase.
B) be unchanged since the effects offset each other.
C) be unchanged since it has no effects on any current accounts.
D) decrease.

Question

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The Answer of Assume the current ratio is 3 to 4. Purchases of inventory on account would cause the current ratio to
A) increase.
B) be unchanged since the effects offset each other.
C) be unchanged since it has no effects on any current accounts.
D) decrease.

Assume the Current Ratio Is 3 to 4