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Question
Jones, Inc. has a current ratio equal to 1.40. Which of the following transactions will increase the company's current ratio?A) The company collects $500,000 of its accounts receivable.
B) The company sells $1 million of inventory on credit.
C) The company pays back $50,000 of its long-term debt.
D) The company writes a $30,000 check to pay off some existing accounts payable.
Answer
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