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A Company Has a Current Ratio of 3:1

question 6

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A company has a current ratio of 3:1. Which action will decrease this ratio?


Definitions:

Polished Areas

Surfaces on a material or component that have been smoothened and glossed to reduce friction or for aesthetic purposes.

Slipping Rim

A condition where the wheel rim moves independently of the tire, often caused by a loss of friction or improper installation.

Bent Lug Stud

A damaged or misshapen lug stud, which is a bolt that is used to secure the wheel to the vehicle's hub.

Payback Method

This capital budgeting method calculates the time taken for an investment to generate cash flows to recover the initial capital outlay.

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