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QUESTION 13 At the end of 2017, it is discovered that the accountant for Gower Company failed to record $60,000 of interest p
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The quick ratio as formerly computed will decrease as a result of correction.

Reason:-

Quick ratio= Quick Assets/ Current Liabilities

Interest payable is part of current liabilities. If we will add interest payable then current liabilities will increase. The increase in denominator will decrease, Quick ratio.

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