Multiple Choice
A company has current assets of $200,000 and current liabilities of $150,000.If they used cash to pay off some accounts payable, what would the effect be on their current ratio?
A) The current ratio would increase.
B) The current ratio would decrease.
C) The current ratio would stay the same.
D) The effect on the current ratio would depend on the amount paid.
Correct Answer:
Verified
Correct Answer:
Verified
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