How can a company improve its current ratio?
A) Work with a creditor to reclassify some current debt into long-term debt
B) Use cash to reduce current liabilities
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, thus improving the current ratio.

How Can a Company Improve Its Current Ratio