Answered: If current assets exceed current…

If current assets exceed current liabilities, payments of accounts payable willa. decrease the current ratio.b. increase the current ratio.c. decrease working capital.d. increase working capital.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 25MC: What is the impact on the accounting equation when a payment of account payable is made? A. both...

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Question

If current assets exceed current liabilities, payments of accounts payable will
a. decrease the current ratio.
b. increase the current ratio.
c. decrease working capital.
d. increase working capital.

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