Which of the following would NOT improve the current ratio?
le.

Question

Borrow short term to finance additional fixed assets.

Issue long-term debt to buy inventory.

Sell common stock to reduce current liabilities.

Sell fixed assets to reduce accounts payab

Ahmed kandil · Answer

Answer(A) is the correct answer

loai allam · Answer

A clearly is the answer . Because all options do improve the finance section except option a.

Mahmoud Al Dafrawi CMA andFMVA · Answer

Issue long-term debt to buy inventory 
Because this is the only one which will increase current assets without increasing current liabilities. 
Current Ratio = current assets /current liabilities

Mir Mujtaba Ali · Answer

Borrow short term to finance additional fixed assets

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Mazhar Ali Kazmi · Answer

The only logical answer is option A because all other options seem to improve the finance section except option A.

Alex Al Yazouri · Answer

Borrow short term to finance additional fixed assets

would NOT improve the current ratio

Gowramma Gowramma · Answer

Sell common stock to reduce current liabilities

Deleted user · Answer

Borrow short term to finance additional fixed assets.

Muhammad Ramzan Tufail ACCA · Answer

(A) is the Ans.

Short term Borrowing to finance the additional fixed assets.

Mark Angelo Damuag · Answer

The answer would be to Borrow short term to finance additional fixed assets.

Emad Mohammed said abdalla · Answer

>>>>>>>>>>>Borrow short term to finance additional fixed assets.

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Which of the following would NOT improve the current ratio? le.

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