How can a company improve its current ratio?
A)Work with a creditor to reclassify some current debt into long-term debt
B)Collect accounts receivable
C)Nothing can ethically be done to improve the current ratio
D)Use excess cash to buy new equipment

Question

Quizplus · Accepted Answer

Reclassifying current debt into long-term debt reduces current liabilities, thereby improving the current ratio.

How Can a Company Improve Its Current Ratio