Which transactions will not cause change in current ratio


A company has a current ratio of 2:1 at December 31, 2014. Which of the following transactions will not cause a change in the current ratio?

  1. Declaration of a 10% stock dividend.
  2. Purchase of short-term investments for cash.
  3. Payment of a long-term liability.
  4. Declaration of a cash dividend.
  5. Both a. and b.
  6. Both a. and d.

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Finance Basics: Which transactions will not cause change in current ratio
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