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  3. Study Set
    Intermediate Accounting Study Set 14
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    Exam 22: Financial Statement Analysis
  5. Question
    A Company Decides to Pay Off Some of Its Current
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A Company Decides to Pay Off Some of Its Current

Question 156

Question 156

True/False

A company decides to pay off some of its current liabilities with cash.Before doing so the company had a current ratio of 1.After paying these liabilities, the company's current ratio will improve.

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