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Assuming the current ratio is currently 2.0, which of the following actions will increase the ratio? purchasing inventory with cash purchasing inventory with shortterm credit

Assuming the current ratio is currently 2.0, which of the following actions will increase the ratio?

purchasing inventory with cash

purchasing inventory with shortterm credit

paying off a shortterm bank loan with a longterm debt

a customer paying an overdue bill

all of the above will increase the current ratio

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