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Cash payment of short term payables, where current assets are exceeded by current liabilities will: A. Increase the current ratio B. Decrease the current ratio

Cash payment of short term payables, where current assets are exceeded by current liabilities will:

A. Increase the current ratio

B. Decrease the current ratio

C. Will have no effect on the acid-test ratio

D. None of the choices

Please provide a comprehensive explanation for your answer.

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