A company's current ratio and its acid-test ratio are both greater than 1.Payment of an account payable would:

A) increase the current ratio but the acid-test ratio would not be affected.
B) increase the acid-test ratio but the current ratio would not be affected.
C) increase both the current and acid-test ratios.
D) decrease both the current and acid-test ratios.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.

Current Ratio

A liquidity measure that assesses a company's ability to pay its short-term obligations with its short-term assets.

Account Payable

An obligation or liability of a company to pay a short-term debt to its creditors or suppliers.