What will happen to the current ratio if current assets increase, while everything else remains unchanged?

Question

05-09-2022
Business

Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

What will happen to the current ratio if current assets increase, while everything else remains unchanged?

Sagot :

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.

Which of the following represents a tragedy of the commons?

Point M is the midpoint of AB. Find BM.

The eiffel tower in france is an example of what kind of architectural relationship?

Match each quadratic equation with its solution set. 2x2 − 32 = 0 4x2 − 100 = 0 x2 − 55 = 9 x2 − 140 = -19 2x2 − 18 = 0

Quick algebra 1 question for 10 points! Only answer if you know the answer, quick shout-out to tariqareesha2 and MrBrainly, tysm for the help!

What mass of copper could be electroplated on the cathode in an experiment where an average of 200 ma was passed through the cell for 35 minutes?

From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.

05* Find, for y> 0, the general solution of the differential equation dy/dx=xy. Inlyl=1/2x^2+c Inlyl=1/2x^2-c Inlyl=-1/2x^2-c Inly|=-1/2x^2+c

Com101 an important aspect of informative speaking is making your subject ________ the audience

What are the two most likely reasons an unfavorable total materials variance may exist?

okpalawalter8 okpalawalter8 · Answer 1 · 2022-09-09T11:52:50-04:00

The current ratio will increase if current assets increase, while everything else remains unchanged.

This is further explained below.

What is the current ratio?

Generally, A liquidity ratio that evaluates a company's capacity to pay short-term debts or those that are due within the next year is called the current ratio.

It explains to investors and analysts how a business may get the most out of the current assets that are shown on its balance sheet in order to pay off its current debt and any other payables.

A current asset is defined as any asset that a company can reasonably expect to sell, consume, or deplete through the normal operations of the business inside the current financial year or an operating cycle, or an economic year.

In other words, a current asset is an asset that will be sold, consumed, or exhausted.

In conclusion, If current assets continue to grow while everything else stays the same, the current ratio will continue to show an upward trend.

Sagot :

What is the current ratio?

Other Questions