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It depends from which source Accounts Payable are clearing if it is from current asset then it will reduce the current ratio
What else can I help you with?
Does a change in current assets increase or decrease cash flow?
It depends on the current asset, so the change of current asset might be increase or decrease cash flows.
Issuance of short term bond increase or decrease current ratio?
decrease
The payment of a current liability will?
increase working capital
Which one of the following will increase the value of a firm's net working capital?
Net working capital is calculated as current assets minus current liabilities. To increase a firm's net working capital, one could either increase current assets, such as by boosting cash or inventory levels, or decrease current liabilities, such as by paying off short-term debt. For example, collecting accounts receivable more quickly would increase current assets and thus raise net working capital.
What happens to the current ratio when an accounts payable is paid with cash?
When an accounts payable is paid with cash, both current assets and current liabilities decrease by the same amount, as cash (a current asset) is reduced and accounts payable (a current liability) is also reduced. Consequently, the current ratio, which is calculated as current assets divided by current liabilities, remains unchanged. However, the overall liquidity position of the company may improve as it reduces its liabilities.
Current ratio would normally increased by?
The current ratio is an accounting measure of liquidity and is defined by: Current Assets / Current Liabilities In order to increase the current ratio, either increase current assets (e.g. cash, inventory, accounts receivable) or to decrease current liabilities (e.g. accounts payable, notes payable).
Does the magnetic field increase or decrease if the current is decreased?
An increase in an electrical current will cause magnetism to increase but a decrease in an electrical current will cause magnetism to decrease.
Does a change in current assets increase or decrease cash flow?
It depends on the current asset, so the change of current asset might be increase or decrease cash flows.
How does the increase or decrease of potential difference affect the flow of the electric current?
Increase or decrease in potential results in the change in direction of the flow of electric current.
which of the of the following would increase a company current ratio?
Increasing Cash Reserves: If a company holds more cash or cash equivalents, it will increase its current assets, which would raise the current ratio. Reducing Short-Term Debt: Paying off or reducing short-term debt, such as accounts payable or short-term loans, will decrease current liabilities, resulting in a higher current ratio. Increasing Accounts Receivable Collections: If a company collects outstanding accounts receivable more promptly, it will increase its cash or current assets, which can raise the current ratio. Decreasing Inventory Levels: Reducing excess inventory can decrease current assets, but it can also reduce current liabilities if the company has short-term loans secured by inventory. This can potentially increase the current ratio. Increasing Current Assets: By increasing any of the current assets, such as accounts receivable, prepaid expenses, or marketable securities, without a corresponding increase in current liabilities, the current ratio will go up. Restructuring or Refinancing Short-Term Debt: If a company restructures or refinances its short-term debt to extend maturity dates, it can reduce the current portion of long-term debt, which would decrease current liabilities and raise the current ratio.
Since the current recession has there been an increase or decrease in bankruptcy?
Increase.
Issuance of short term bond increase or decrease current ratio?
decrease
Does transformer doubles the power?
No. Power is constant. Transformers neither increase nor decrease power, except for minor losses. They increase or decrease voltage, and they decrease or increase current, but the product of voltage and current, i.e. power, remains the same.
The payment of a current liability will?
increase working capital
What device can be used to increase current in a DC circuit?
Transformer or instrument transformer. It can increase and decrease current output.
Why is alternating current more effective at long distance travel than direct current?
Transformers increase and decrease voltage as needed. PLATO
When tempratere increase resistance increase and when resistance increase current decrease why?
That's what "resistance" is all about: reducing the current for a given voltage. In fact, you can DEFINE resistance as voltage divided by current.
