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QUESTION 40 A firm has $ 1.2 million in current assets and $ 1 million in current liabilities. If the company uses $ 0.5 millions

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QUESTION 40 A firm has $ 1.2 million in current assets and $ 1 million in current liabilities. If the company uses $ 0.5 millions of cash to pay any of your payable accounts, what will happen to the "current ratio"? A. the "current ratio" will not be affected B. obviously the "current ratio" will decrease when using cash C. the current ratio will decrease from 1.4 to 1.2 D. the "current ratio" will increase from 1.2 to 1.4 E. the "current ratio" will decrease by 17%

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