Q.) If a company's current ratio increases from 1.1 to 1.3 from one year to the next, it can be concluded that:

a. company's liquidity has increased

b. current assets have increased

c. current liabilities have decreased

d. none of the above

Note: I think the answer is none of the above. But I am not sure why any of the other answer's could be incorrect. What would be the correct explanation?