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If a company has an acid-test ratio of 1.2, what respective effects will the borrowing of cash by short-term debt and the collection of accounts

If a company has an acid-test ratio of 1.2, what respective effects will the borrowing of cash by short-term debt and the collection of accounts receivable have on the ratio?

Short-term

Borrowing Collection ofReceivable

a.Increase Increase

b.Increase No effect

c.Decrease No effect

d.Decrease Decrease

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