Friday, October 10, 2014

Solomon Company has a current ratio greater than 1 and an acid-test ratio less than 1.How would cash...

Solomon Company has a current ratio greater than 1 and an acid-test ratio less than 1.How would cash payments to suppliers to reduce accounts payable affect these ratios?

 

Current ratio

Quick ratio

A)

Decreased

Decreased

B)

Decreased

Increased

C)

Increased

Decreased

D)

Increased

Increased

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