A company\'s current ratio and acid-test ratios are both greater than 1. Issuing

Question

A company's current ratio and acid-test ratios are both greater than 1. Issuing bonds to finance purchase of an office building with the first installment of the bonds due in the current year would:

decrease net working capital. decrease the acid-test ratio. affect all of the above as indicated. decrease the current ratio.



Assuming stable business conditions, an increase in the accounts receivable turnover ratio could be explained by: none of these. a slowdown in collecting accounts receivables from customers. stricter policies with respect to the granting of credit to customers. an easing of policies with respect to the granting of credit to customers.

Explanation / Answer

affect all of the above as indicated.

a slowdown in collecting accounts receivables from customers.

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