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If a company uses cash to pay off some of its accounts payables, what effect will this have on its liquidity ratios, given that the
If a company uses cash to pay off some of its accounts payables, what effect will this have on its liquidity ratios, given that the ratios are less than 1 before the payoff? - The quick ratio and current ratio will both increase. - The quick ratio and current ratio will both decrease. - The quick ratio will increase but the current ratio will remain unchanged. - The current ratio will increase but the quick ratio will remain unchanged
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