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Assuming a current ratio of 1.0 and an acid-test ratio of 0.75, how will the borrowing of cash to be paid back in five years

Assuming a current ratio of 1.0 and an acid-test ratio of 0.75, how will the borrowing of cash to be paid back in five years affect each ratio?

Multiple Choice

Increase the current ratio and decrease the acid-test ratio.

Increase the current ratio and increase the acid-test ratio.

Decrease the current ratio and decrease the acid-test ratio.

No change to the current ratio and decrease the acid-test ratio.

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