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