A Company with a Current Ratio of 2

question 140

Multiple Choice

A company with a current ratio of 2.4 times will see that ratio decrease when the company

• A)pays a large current liability.
• B)declares a 10 percent stock dividend on its common stock.
• C)borrows cash by issuing a short-term note payable.
• D)converts a short-term liability to a long-term liability.

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