The Miller Company paid off some of its accounts payable using cash.The company's current ratio is greater than 1.0 to 1.The company's current ratio would:

Question

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When accounts payable are paid off using cash, both current liabilities and current assets decrease by the same amount. Since the current ratio is greater than 1.0, reducing both by the same amount will increase the current ratio.

The Miller Company Paid Off Some of Its Accounts Payable