Multiple Choice
A company's current ratio and acid-test ratios are both greater than 1.0 to 1.If obsolete inventory is written off,what would be the effect?
A) A decrease in the acid-test ratio.
B) An increase in the acid-test ratio.
C) An increase in net working capital.
D) A decrease in the current ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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