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Cash receipt from short term borrowings, where current assets exceeds current liabilities will: Increase the current ratio Decrease the current ratio Will have no effect

Cash receipt from short term borrowings, where current assets exceeds current liabilities will:

  1. Increase the current ratio
  2. Decrease the current ratio
  3. Will have no effect on the acid-test ratio
  4. None of the choices

Please provide a comprehensive explanation for your answer.

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