单选题
Given that the current ratio is 2.0 times if we use cash to settle the short-term liability. How would this transaction affect the current and quick ratios? Current Ratio Quick Ratio A. decrease decrease B. decrease remain unchanged C. increase remain unchanged
【正确答案】
C
【答案解析】Current ratio = Current assets/Current liabilities
Quick ratio=(Current assets-investing)/Current liabilities
For Example, CA=$ 400 consisting of cash=$ 50, accounts receivable=$150, and inventories=$ 200; and CL=$ 200.
Before: Current ratio=$ 400/$ 200=2.0x; Quick ratio=$ 200/$ 200=1.0x.
Assume that the company uses $ 50 in cash to pay off $ 50 in notes payable.
After: Current ratio=$ 350/$150=2.3x; Quick ratio=$150/$150=1.0x.