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A Company's Current Ratio and Acid-Test Ratios Are Both Greater

Question 64

Multiple Choice

A company's current ratio and acid-test ratios are both greater than 1.The collection of a current accounts receivable of $29,000 would:


A) increase the current ratio.
B) decrease the current ratio.
C) not affect the current ratio or the acid-test ratio.
D) decrease the acid-test ratio.

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