Norton Inc.could improve its current ratio of 2 by:
A) paying a previously declared stock dividend.
B) writing off an uncollectible receivable.
C) selling merchandise on credit at a profit.
D) purchasing inventory on credit.

Question

Quizplus · Accepted Answer

Selling merchandise on credit at a profit increases both assets (accounts receivable) and equity (through profit), without affecting current liabilities, thus improving the current ratio.