A company's current ratio is 1.5,what is the effect of obtaining land by issuing shares of stock?

Name: A company's current ratio is 1.5,what is the effect of obtaining land by issuing shares of stock?
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Question

Quizplus · Accepted Answer

Obtaining land by issuing shares of stock does not affect the current ratio, which is calculated by dividing current assets by current liabilities. Only current assets and current liabilities can affect the current ratio, and obtaining land does not fall into either of those categories.

A Company's Current Ratio Is 1