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gogolik [260]
3 years ago
11

Broca Corporation has a current ratio of 2.5. Which of the following transactions will increase Broca's current ratio? Select on

e: a. the purchase of inventory for cash. b. the collection of an account receivable. c. the payment of an account payable. d. none of the above.
Business
1 answer:
Vaselesa [24]3 years ago
6 0

Answer:

b. the collection of an account receivable

Explanation:

The formula to compute the current ratio is shown below:

As we know that

Current ratio = Current assets ÷ Current liabilities

If the current ratio is 2.5 that means the current assets is higher than the current ratio

As per the given options, the option b is correct and hence the same is to be considered

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