Lowering the current ratio


Amram Company's current ratio is 2.0. Considered alone, which of the following actions would lower the current ratio?

a) Borrow using short-term notes payable and use the proceeds to reduce accruals.

b) Borrow using short-term notes payable and use the proceeds to reduce long-term debt.

c) Use cash to reduce accruals.

d) Use cash to reduce short-term notes payable.

e) Use cash to reduce accounts payable.

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Risk Management: Lowering the current ratio
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