Business, 16.08.2020 01:01 adazeb2003
One common problem with the current ratio is that it is susceptible to "window dressing." If prior to the end of the accounting period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to:
a. purchase short-term investments with cash.
b. purchase more inventory with cash.
c. pay off accounts payable prior to year-end.
d. purchase more inventory on account.
Answers: 1
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Answers: 1
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