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7 ) Assuming a current ratio of 1 . 5 and an acid - test ratio of 0 . 9 0 , how will the

7) Assuming a current ratio of 1.5 and an acid-test ratio of 0.90, how will the purchase of inventory with
cash affect each ratio?
A) Increase the current ratio and increase the acid-test ratio.
B) No change to the current ratio and decrease the acid-test ratio.
C) Decrease the current ratio and decrease the acid-test ratio.
D) Decrease the current ratio and increase the acid-test ratio.

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