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Describes the actual results of the transactions

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Question 1: Sexy corporations current ratio is 0.5, while coke company's current ratio is 1.5. Both firms want to window dress their coming end - of the year financial statement. As part of its window dressing strategy, each firm will double its current liabilities by adding short term debt and placing the funds obtained in the cash account. which of the following statements below best describes the actual results of these transactions ?

a. the current ratios both firms will be increased.

b. the current ratios firms will be decreased.

c. the transactions will have no effort on the current ratios.

d. only sexy corporations current ratio will be increased.

Reference no: EM132545989

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