How would the following transactions affect the current ratio and the acid-test ratio? (a) Purchase of inventory

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How would the following transactions affect the current ratio and the acid-test ratio?
(a) Purchase of inventory with cash;
(b) Sale of inventory for more than its cost. Assume that prior to these transactions the current ratio and acid-test ratio are both less than one.

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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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