Which of transactions result in increase in current ratio

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Problem 1: When cash sales resulted in some loss, compare the working capital ratio after the sale with the ratio before the sale:

a. The ratio after the sale is greater
b. The ratio before the sale is equal to the ratio after the sale
c. The ratio before the sale is greater
d. There is no effect at all

Problem 2: Which of the following transactions will result in an increase in current ratio , assuming that the ratio is presently 2:1 ?

a. Repaid a 90 day loan
b. Liquidated long-term liability
c. Purchased merchandise on account
d. Received payment on accounts receivable

Reference no: EM132741551

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