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a company has a current ratio of 1.5. Cash is used to pay down accounts payable, which is the firm's only current liability. Inventory and
a company has a current ratio of 1.5. Cash is used to pay down accounts payable, which is the firm's only current liability. Inventory and Accounts Receivable balances are positive and remain unchanged. What happens to the current ratio?
a- Decreases
b-Increases
c-Stays the same
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Accounting Information Systems
Authors: Vernon Richardson, Chengyee Chang, Rod Smith
2nd edition
