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Which statement about inventories is correct? a . An increase in accounts payable would increase the current ratio. b . If a firm increases its
Which statement about inventories is correct?
a An increase in accounts payable would increase the current ratio.
b If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.
c An increase in accrued taxes would increase the current ratio.
d A reduction in inventories held would increase the current ratio.
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