Amram Company's current ratio is 1.9. Considered alone, which action would reduce the company's current ratio?
A) Borrow using short-term notes payable and use the proceeds to reduce accruals.
B) Borrow using short-term notes payable and use the proceeds to reduce long-term debt.
C) Use cash to reduce short-term notes payable.
D) Use cash to reduce accounts payable.

Question

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The Answer of Amram Company's current ratio is 1.9. Considered alone, which action would reduce the company's current ratio?
A) Borrow using short-term notes payable and use the proceeds to reduce accruals.
B) Borrow using short-term notes payable and use the proceeds to reduce long-term debt.
C) Use cash to reduce short-term notes payable.
D) Use cash to reduce accounts payable.

Amram Company's Current Ratio Is 1