A Company Has a Current Ratio of 2

question 63

Multiple Choice

A company has a current ratio of 2.4 before paying off a large current liability with cash.Following this payment,what is the current ratio?

• A)Greater than 2.4 or less than 2.4 depending upon the dollar amount involved.
• B)Less than 2.4.
• C)Equal to 2.4.
• D)Greater than 2.4.

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