Answered: Which of the following would cause an…

Which of the following would cause an increase in the current ratio? A) Paying off current liabilitiesB) Issuing long-term debtC) Purchasing inventory on creditD) Declaring and paying dividends

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 20MCQ

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Which of the following would cause an increase in the current ratio?

A) Paying off current liabilities
B) Issuing long-term debt
C) Purchasing inventory on credit
D) Declaring and paying dividends

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Answer?