One of the following cause increase in current ratio 1- increase fixed assets 2- decrease accrual expenses 3- decrease in cash 4- collect of A/R

2- Decrease Accrual Expenses

Option (2) is correct Ans.

This will reduce the current liabilities and so, increase the current ratio.

Answer  - No2 -Decrease in accrual Expense 

decrease in accrual expenses because it will reduce current liabilities 

decrease accrual expenses will cause an increase in current ration.1 and4 doesn't affect the current ratio while3 will decrease current ratio

Answer option: >>>>>>>>>>>    Decrease accrual expenses

Current ratio= Current asset/ current liabilities

Currect answer :

No2 -Decrease in accrual Expense

2-

Decrease in accrual Expenses decreases current Assets and when current Assets decrases the Current Ratio increases 

i guess none of them....all other options already explained....i wish to talk about decrease in accrual expenses....yes decrease in accrual expenses will effect in decreasing current liability but how does this decrease happen, you must have paid through cash / bank which already reduced your current assets....therefore no effect on current ratio

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