Which of the following would be most detrimental to a firm's current ratio if that ratio is currently 2.0?

Question

Quizplus · Accepted Answer

Paying off a portion of long-term debt with cash will decrease the current assets part of the current ratio, while the current liabilities part remains the same. This will result in a decrease in the current ratio, making it less than 2.0. None of the other options will have a significant impact on the current ratio.

Which of the Following Would Be Most Detrimental to a Firm's