登录之后可查看解析

Answer (A) is correct . The current ratio equals current assets divided by current liabilities. The declaration of a dividend results in a decrease in retained earnings and an increase in current liabilities. The effect is to decrease the current ratio because current liabilities are increased at the time of the declaration without a change in current assets. The April 30 current ratio is 2.57 ($5,310,000 ¡Â $2,067,000). Following the declaration of an $800,000 dividend, the current ratio is 1.85 ($5,310,000 ¡Â $2,867,000). The subsequent payment of the dividend will increase the ratio because the ratio is greater than 1.0 and both current assets and current liabilities will decline by the same amount. The current ratio after the payment is 2.18 ($4,510,000?¡Â $2,067,000).<
Answer (B) is incorrect because The dividend declaration decreases the current ratio, and the payment increases the ratio.
Answer (C) is incorrect because The dividend declaration decreases the current ratio, and the payment increases the ratio.
Answer (D) is incorrect because The dividend declaration decreases the current ratio, and the payment increases the ratio.