A firm is close to violating the current ratio debt covenant in one of its loan agreements.Which accounting action would you recommend to reduce the likelihood of a technical violation?
A) Firm should pay it accounts receivable.
B) Firm should obtain more debts from its suppliers.
C) Firm should call to convert note payable to equity.
D) Firm should revalue its non-current assets.
E) Firm should sell non-performing assets.
Correct Answer:
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