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Which of the Following Statements Is Most Correct

Question 50

Multiple Choice

Which of the following statements is most correct?


A) If a company increases its current liabilities by $1,000 and simultaneously increases its inventories by $1,000, its current ratio must rise.
B) If a company increases its current liabilities by $1,000 and simultaneously increases its inventories by $1,000, its quick ratio must fall.
C) A company's quick ratio may never exceed its current ratio.
D) Answers b and c are correct.
E) None of the answers above is correct.

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