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If a Company Has a Liquid Ratio of 0

Question 28

Multiple Choice

If a company has a liquid ratio of 0.9,in order to improve its liquid ratio it might:


A) increase its current assets by increasing its inventory.
B) use more short-term debt to decrease current liabilities.
C) increase its large amounts of accounts receivable to improve its cash position.
D) increase its large amount of accounts to pay to decrease its current liabilities.

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