Financial and Management Accounting

1: The current ratio of a company is 2 : 1. Which of the following suggestions would reduce it?
A.

Paying off a current liability

B.
Selling off a motor car for cash at a slight loss
C.
To borrow from money for a short time on an interest bearing promissory note
D.

Issuing new shares.

 

Answer : C

Explanation :

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Option: A

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