A company has a current ratio of 2 to 1.This ratio will decrease if the company:
A) borrows cash on a six-month note.
B) sells merchandise for more than cost and records the sale using the perpetual inventory method.
C) receives a 5 percent stock dividend on one of its marketable securities.
D) pays a large account payable which had been a current liability.
E) None of these choices are correct.
Correct Answer:
Verified
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