Assume that a firm issues a six-month note to purchase inventory. Whic
Assume that a firm issues a six-month note to purchase inventory. Which of the following is true if
the current ratio before the purchase is 1.0?
A) The firm’s current ratio must decrease. B) The firm’s current ratio will increase.
C) The firm’s quick ratio might decrease. D) The firm’s quick ratio will stay the same.
ANSWER
C
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