Rahner Company has a current ratio of 1.75 to 1.Which of the following will cause this ratio to decrease?
A) The company borrows cash using a six-month note.
B) The company pays the taxes payable which have been a current liability.
C) The company pays the following month's rent on the last day of the year.
D) The company sells inventory for more than their cost.
Correct Answer:
Verified
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