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1- If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund

1- If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable. True or false?

2- If the acid-test ratio is less than one, then paying off some current liabilities with cash will increase the acid-test (quick) ratio. True or false?

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