If Bulldogs’ current liabilities are P1,300,000, the firm’s A. Acid-test ratio will be constant if a payment of P100,000 cash is used to acquire inventory. B. Acid-test ratio will decrease if a payment of P100,000 cash is used to acquire inventory. C.current ratio will decline if a payment of P100,000 cash is used to pay P100,000 of current liabilities. D. current ratio will remain constant if a payment of P100,000 cash is used to pay P100,000 of current liabilities

If Bulldogs’ current liabilities are P1,300,000, the firm’s A. Acid-test ratio will be constant if a payment of P100,000 cash is used to acquire inventory. B. Acid-test ratio will decrease if a payment of P100,000 cash is used to acquire inventory. C.current ratio will decline if a payment of P100,000 cash is used to pay P100,000 of current liabilities. D. current ratio will remain constant if a payment of P100,000 cash is used to pay P100,000 of current liabilities

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3MC: The following is selected financial data from Block Industries: How much does Block Industries have...

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