Which of the following events will cause a company's current ratio to increase?
A)The collection of an account receivable
B)Selling land for cash at a loss
C)The discharge of an account payable by signing a short-term note payable
D)Paying off a long-term loan

Question

Quizplus · Accepted Answer

Selling land for cash at a loss increases current assets (cash) without affecting current liabilities, thus increasing the current ratio.

Which of the Following Events Will Cause a Company's Current