$2$

Multiple Choice

$3$ points

A lending officer at ABC Bank has insisted that your firm improve the current ratio of $1\mathrm{.}0$ before the bank will consider a loan. Which of the following actions would INCREASE the ratio?

None of these actions would increasee the ratio.

Selling some of the existing inventory at cost

Collecting some of the current accounts recelvable

Borrowing short$-$term bank loan for cash

Using cash to pay off current liabilities

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