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Rahner Company Has a Current Ratio of 1

Question 20

Multiple Choice

Rahner Company has a current ratio of 1.75 to 1.This ratio will decrease if Rahner Company engages in which of the following transactions?


A) Borrows cash using a six-month note.
B) Pays the taxes payable that have been a current liability.
C) Pays the following month's rent on the last day of the year.
D) Sells inventory for more than its cost.

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