Jones, Inc. has a current ratio equal to 1.40. Which of the following

Jones, Inc. has a current ratio equal to 1.40. Which of the following transactions will increase the
company’s current ratio?

A) The company pays back $50,000 of its long-term debt.
B) The company collects $500,000 of its accounts receivable.
C) The company sells $1 million of inventory on credit.
D) The company writes a $30,000 check to pay off some existing accounts payable.

ANSWER

D