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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 acid-test
- 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 acid-test ratio decreases. B) Its acid-test ratio remains unchanged.
C) Its current ratio decreases. D) Its current ratio remains unchanged.
Please explain your answer. Thank you.
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Auditing And Assurance Services A Systematic Approach
Authors: William F. Messier
6th Edition
0073526908, 9780073526904
