Suppose a company's quick ratio is 1.8. If the company were to repay some accounts...
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Suppose a company's quick ratio is If the company were to repay some accounts payable using cash, which of the following would be TRUE? A The numerator and denominator would decrease by equal amounts, resulting in a higher quick ratio. B The numerator would not change, but the denominator would decrease, resulting in a higher quick ratio. C The numerator would decrease by more than the denominator, resulting in a lower quick ratio. D The numerator and denominator would decrease by equal amounts, leaving the quick ratio unchanged.
Suppose a company's quick ratio is If the company were to repay some accounts payable using cash, which of the following would be TRUE?
A
The numerator and denominator would decrease by equal amounts, resulting in a higher quick ratio.
B
The numerator would not change, but the denominator would decrease, resulting in a higher quick ratio.
C
The numerator would decrease by more than the denominator, resulting in a lower quick ratio.
D
The numerator and denominator would decrease by equal amounts, leaving the quick ratio unchanged.
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