Nabil Biscuits interested to maintain the current ratio is 1.5 for the year 2020. The company wishes to maintain more than 2, Analyse which of the following would NOT improve the current ratio of the company? a. Sell common stock to reduce current liabilities b. Borrow short term to finance additional fixed assets c Issue long-term debt to buy inventory d. Sell fixed assets to reduce accounts payable
Nabil Biscuits interested to maintain the current ratio is 1.5 for the year 2020. The company wishes to maintain more than 2, Analyse which of the following would NOT improve the current ratio of the company? a. Sell common stock to reduce current liabilities b. Borrow short term to finance additional fixed assets c Issue long-term debt to buy inventory d. Sell fixed assets to reduce accounts payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nabil Biscuits interested to maintain the current ratio is 1.5 for the year 2020. The company wishes to maintain more than 2, Analyse which of the following would NOT improve the current ratio of the company?
a. Sell common stock to reduce current liabilities
b. Borrow short term to finance additional fixed assets
c Issue long-term debt to buy inventory
d. Sell fixed assets to reduce accounts payable
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