Which one of the following events decreases the current ratio?

Name: Which one of the following events decreases the current ratio?
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Question

Quizplus · Accepted Answer

The purchase of treasury stock reduces the current assets and does not affect the current liabilities, leading to a decrease in the current ratio. A stock split has no effect on the current assets or liabilities. Sale of treasury stock for more than its cost or less than its cost does not affect the current assets or liabilities, hence does not affect the current ratio.

Which One of the Following Events Decreases the Current Ratio