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Accounting for IGCSE & O level - Advanced Principles (Section 6 - No. 48)

Which of the following actions is most likely to improve a company's current ratio?
Paying off accounts payable with cash.
Purchasing inventory on credit.
Issuing new shares of stock for cash.
Increasing operating expenses.

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Selling shares brings in cash, which increases current assets, thus increasing the current ratio.

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