Which of the following statements is incorrect? a) If inventory is purchased using cash, there would be
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Question:
Which of the following statements is incorrect?
a) If inventory is purchased using cash, there would be no effect on the current ratio.
b) If current assets < current liabilities to start with and inventory is purchased on credit, there would be a positive effect on the current ratio.
c) If current assets > current liabilities to start with and inventory is purchased on credit, there would be a negative effect on the current ratio.
d) If inventory is purchased using cash, there would be a positive effect on the current ratio.
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