1. Assuming that the current ratio is currently 2, which of the following actions will increase it?
Purchasing inventory with cash.
Purchasing inventory on short-term credit.
Paying off a short-term bank loan with long-term debt.
None of the above increase the current ratio.
All of the above increase the current ratio.
2. An improper use of extended credit is buying
an expensive house
an expensive car
a piece of land
an expensive dinner