Question: One common problem with the current ratio is that it is susceptible to window dressing If prior to the end of an accounting period

One common problem with the current ratio is that it is susceptible to "window dressing " If prior to the end of an accounting period a company with a current ratio egual to 0.80 wiches to boost its
current ratio it may decide to:
a. purchase more inventory on account.
b. purchase short-term investments with cash.
c. pay off more of its accounts payable balance.
d. prepay a 6-month insurance policy.

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