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7 ) Assuming a current ratio of 1 . 5 and an acid - test ratio of 0 . 9 0 , how will the
Assuming a current ratio of and an acidtest ratio of how will the purchase of inventory with
cash affect each ratio?
A Increase the current ratio and increase the acidtest ratio.
B No change to the current ratio and decrease the acidtest ratio.
C Decrease the current ratio and decrease the acidtest ratio.
D Decrease the current ratio and increase the acidtest ratio.
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