A company's current ratio is 0.5. Everything else held constant, which of the following actions would increase the company's current ratio?
A) Borrow using short-term notes payable and use the cash to increase inventories.
B) Use cash to reduce accruals.
C) Use cash to reduce accounts payable.
D) Use cash to reduce short-term notes payable.

Question

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The Answer of A company's current ratio is 0.5. Everything else held constant, which of the following actions would increase the company's current ratio?
A) Borrow using short-term notes payable and use the cash to increase inventories.
B) Use cash to reduce accruals.
C) Use cash to reduce accounts payable.
D) Use cash to reduce short-term notes payable.

A Company's Current Ratio Is 0