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Which one of the following statements is incorrect (false) with respect to the current ratio [current ratio = current assets/current liabilities]? a. the purchase of

Which one of the following statements is incorrect (false) with respect to the current ratio [current ratio = current assets/current liabilities]?

a. the purchase of equipment by paying cash would reduce this ratio

b. only the balance sheet is needed to calculate this ratio

c. generally the larger the number the better

d. both the beginning of the period balance sheet and the end of the period balance sheet are needed to calculate this ratio

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