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Question
Amram Company's current ratio is 1.9. Considered alone, which of the following actions would reduce the company's current ratio?a. Use cash to reduce accounts payable.
b. Borrow using short-term notes payable and use the proceeds to reduce accruals.
c. Borrow using short-term notes payable and use the proceeds to reduce long-term debt.
d. Use cash to reduce accruals.
e. Use cash to reduce short-term notes payable.
Answer
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