If a firm has a current ratio of 2, the subsequent collection of a 60-day note receivable on account will cause the ratio to decrease.

Name: If a firm has a current ratio of 2, the subsequent collection of a 60-day note receivable on account will cause the ratio to decrease.
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Question

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The collection of a 60-day note receivable will increase the firm's current assets, thus keeping the current ratio constant or potentially increasing it, depending on the magnitude of the collection.

If a Firm Has a Current Ratio of 2, the Subsequent