Account Current Ratio Question?

Lashawnda Anteby: A. Paying down accounts payable will increase the ratio because current assets and current liabilities will both decrease by the same amount. Collecting accounts receivable will not change anything. That just shifts cash from accounts receivable to cash in bank. Purchasing inventory will decrease the ratio because current assets and liabilities will both increase by the same amount. B. Borrow long term or issue more capital stock....Show more