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Company A has a current ratio greater than 1. If Company A buys inventory on account - which will increase inventory and accounts receivable -
Company A has a current ratio greater than 1. If Company A buys inventory on account - which will increase inventory and accounts receivable - what is the impact to the current ratio?
Not enough information available to answer this question | ||
No change to the current ratio | ||
The current ratio will decrease | ||
The current ratio will increase |
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