Multiple Choice
Lincoln Industries' current ratio is 0.5.Considered alone, which of the following actions would increase the company's current ratio?
A) Use cash to reduce long-term bonds outstanding.
B) Borrow using short-term notes payable and use the cash to increase inventories.
C) Use cash to reduce accruals.
D) Use cash to reduce accounts payable.
E) Use cash to reduce short-term notes payable.
Correct Answer:
Verified
Correct Answer:
Verified
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