Zack Company Has a Current Ratio of 2 A)Option a
B)Option B
C)Option C
D)Option D

question 270

Multiple Choice

Zack Company has a current ratio of 2.5. What will be the effect of a purchase of inventory with cash on the acid-test ratio and on working capital? $\begin{array} { l c c } & \text { Acid-Test Ratio } & \text { Working Capital } \\\text { A) } & \text { decrease } & \text { decrease } \\\text { B) } & \text { decrease } & \text { no effect } \\\text { C) } & \text { no effect } & \text { decrease } \\\text { D) } & \text { no effect } & \text { no effect }\end{array}$

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

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