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Which of the Following Transactions Would Decrease a Company's Current

Question 61

Multiple Choice

Which of the following transactions would decrease a company's current ratio?


A) Selling goods to a customer on account
B) Receiving payment from a customer with an outstanding account receivable
C) Purchasing office supplies for cash
D) Refinancing a short-term liability with a long-term note payable
E) Using cash to settle a long-term liability

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