If a company has an acid-test ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? $\begin{array}{lll}&\text { Short-term Borrowing }&\text {Collection of Receivable }\
\text { a. } & \text { Increase } & \text { No effect } \
\text { b. } & \text { Increase } & \text { Increase } \
\text { c. } & \text { Decrease } & \text { No effect } \
\text { d. } & \text { Decrease } & \text { Decrease }
\end{array}$

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The Answer of If a company has an acid-test ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? $\begin{array}{lll}&\text { Short-term Borrowing }&\text {Collection of Receivable }\
\text { a. } & \text { Increase } & \text { No effect } \
\text { b. } & \text { Increase } & \text { Increase } \
\text { c. } & \text { Decrease } & \text { No effect } \
\text { d. } & \text { Decrease } & \text { Decrease }
\end{array}$

If a Company Has an Acid-Test Ratio of 1