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    Managerial Accounting Study Set 23
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    Exam 16: Financial Statement Analysis
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    A Company's Current Ratio Is Greater Than 1
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A Company's Current Ratio Is Greater Than 1

Question 236

Question 236

Multiple Choice

A company's current ratio is greater than 1. Purchasing raw materials on credit would:


A) increase the current ratio.
B) decrease the current ratio.
C) increase working capital.
D) decrease working capital.

Correct Answer:

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