Which transactions would decrease the ratio


A company has a current ratio of 3:1 at December 31, 2014. Which of the following transactions would decrease this ratio?

  1. Pay an account payable.
  2. Sell bonds at a discount.
  3. Borrow cash by issuing a 90-day note payable.
  4. Issue stock for cash.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Which transactions would decrease the ratio
Reference No:- TGS0672628

Now Priced at $5 (50% Discount)

Recommended (96%)

Rated (4.8/5)