Multiple Choice
Assume that a company's current ratio is 2.0. If the company purchases inventory on credit, which of the following is true?
A) The current ratio will increase.
B) The current ratio will decrease.
C) There will be no net impact on the current ratio.
D) The current ratio will change, but there will be no effect on the quick ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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