Assuming a current ratio of 10 how will the purchase of inventory with cash affect the ratio? Multiple Choice No change to the current rntio. Increase the current ratio Decrease the current ratio. Could elther increase or decrease the curent ratio
Assuming a current ratio of 10 how will the purchase of inventory with cash affect the ratio? Multiple Choice No change to the current rntio. Increase the current ratio Decrease the current ratio. Could elther increase or decrease the curent ratio
Chapter16: Real Estate And High-risk Investments
Section: Chapter Questions
Problem 3DTM
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![Assuming a current ratio of 1.0 how will the purchase of invenitory with cash affect the ratio?
Multiple Choice
No change to the current ratio.
Increase the current ratio.
Decrease the current ratio.
Could elther Increase or decrease the current ratio.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc705a7d-645c-458a-815c-a656bf57e7dd%2F63628e1b-d0e7-4a5d-be87-de1f6a4689a1%2Fy9kiyqb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assuming a current ratio of 1.0 how will the purchase of invenitory with cash affect the ratio?
Multiple Choice
No change to the current ratio.
Increase the current ratio.
Decrease the current ratio.
Could elther Increase or decrease the current ratio.
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