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Which could explain a substantial increase in current ratio

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Reference no: EM132967247

Problem 1: Which of the following could explain a substantial increase in the current ratio (presently 1:1)?

a. A cash deposit received for work to be done next year

b. Sale of a major noncurrent asset near year-end

c. A large prepayment near year-end

d. Purchase of inventory for cash

e. A bonus share issue out of revaluation reserve

Reference no: EM132967247

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