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Assume a company's current ratio and acid-test ratio are less than 1.0 before it purchases inventory on credit. When it makes the purchase: Its current
Assume a company's current ratio and acid-test ratio are less than 1.0 before it purchases inventory on credit. When it makes the purchase:
Its current ratio decreases. | ||
Its acid-test ratio decreases. | ||
Its current ratio remains unchanged. | ||
Its acid-test ratio remains unchanged. |
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