Which of the following would NOT improve the current ratio? Borrow short term to finance additional fixed assets Issue long-term debt to buy inventory Sell equity shares to reduce current liabilities Sell fixed assets to reduce accounts payable

Which of the following would NOT improve the current ratio? Borrow short term to finance additional fixed assets Issue long-term debt to buy inventory Sell equity shares to reduce current liabilities Sell fixed assets to reduce accounts payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Which of the following would NOT improve the current ratio?

Borrow short term to finance additional fixed assets

Issue long-term debt to buy inventory

Sell equity shares to reduce current liabilities

Sell fixed assets to reduce accounts payable

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