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Jackson Supply Company Has a 2 to 1 Current Ratio

Question 23

Multiple Choice

Jackson Supply Company has a 2 to 1 current ratio.This ratio would increase to more than 2 to 1 if the company:


A) Purchased a marketable security for cash.
B) Wrote off an uncollectible receivable.
C) Sold merchandise on account that earned a normal gross margin.
D) Purchased inventory on account.

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