If a Company Bought Inventory on Account, What Would Be

question 101

Multiple Choice

If a company bought inventory on account, what would be the effect on the company's current ratio and debt-to-equity ratio?
$\begin{array}{ll}&\text { Current } & \text { Debt-to-Equity } \\&\text { Ratio } & \text { Ratio } \\A.&\text { increase } & \text { increase } \\B.&\text { increase } & \text { decrease } \\C.&\text { decrease } & \text { increase } \\D.&\text { decrease } & \text { decrease }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Sampling

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