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One problem with ratio analysis is that relationships can sometimes be manipulated. For example, if our current ratio is greater than 1 . 5 ,

One problem with ratio analysis is that relationships can sometimes be manipulated. For example, if our current ratio is greater than

1.5,

then borrowing on a short

-

term basis and using the funds to build up our cash account would cause the current ratio to INCREASE. true or false?

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