What effect would the sale of a company's trading securities at their carrying amounts for cash have on each of the following ratios? Current Ratio Quick Ratio A. No effect No effect B. increase increase c. no effect increase D. increase no effect

What effect would the sale of a company's trading securities at their carrying amounts for cash have on each of the following ratios? Current Ratio Quick Ratio A. No effect No effect B. increase increase c. no effect increase D. increase no effect

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 59BE

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Question

What effect would the sale of a company's trading securities at their carrying amounts for cash have on each of the following ratios?

Current Ratio Quick Ratio

A. No effect No effect

B. increase increase

c. no effect increase

D. increase no effect

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