[amp_mcq option1=”By showing more current assets” option2=”By showing more current liabilities” option3=”By showing less current assets” option4=”None of these” correct=”option1″]<\/p>\n
The correct answer is A. By showing more current assets.<\/p>\n
Current ratio is a liquidity ratio that measures a company’s ability to pay its short-term obligations. It is calculated by dividing current assets by current liabilities. A higher current ratio indicates that a company is more likely to be able to pay its short-term obligations.<\/p>\n
There are a few ways to increase a company’s current ratio. One way is to increase current assets. This can be done by increasing cash, accounts receivable, or inventory. Another way to increase the current ratio is to decrease current liabilities. This can be done by paying down debt or by reducing accounts payable.<\/p>\n
Option B is incorrect because showing more current liabilities will decrease the current ratio. Option C is incorrect because showing less current assets will also decrease the current ratio. Option D is incorrect because it is not a possible way to increase the current ratio.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”By showing more current assets” option2=”By showing more current liabilities” option3=”By showing less current assets” option4=”None of these” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-59459","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n