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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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