Question:Assume that the current ratio of XYZ Company is 2.5:1. What effect would an equal dollar increase in current assets and current liabilities have on the current ratio? 

A It would increase the current ratio. 
B It would decrease the current ratio. 
C It would have no effect on the current ratio. 
D The answer cannot be determined from the information given. 

+ Answer
B 

+ Explanation
Answer not sure

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Md. Habib Ullah

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