If a Company Has a Current Ratio of 2,which of the Following

question 39

Multiple Choice

If a company has a current ratio of 2,which of the following measures will increase the current ratio?

• A) Buying more inventory on short-term credit
• B) Buying more inventory with cash
• C) A customer paying an overdue account
• D) Paying off a short-term bank advance with long-term debt

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