considered alone, which of the following would increase a company’s current ratio?,

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The accounting equation is a way of understanding the balance between assets, liabilities and equity. The equation is: Assets = Liabilities + Equity. This means that to increase a company’s current ratio, you need to either reduce its liabilities or increase its equity or both. Which of the following would most likely be an example of something that would increase a company’s current ratio? a) A company has $50,00 in cash. b) The company’s inventory increased by $200,00 from the previous year. c) One of its long-term assets decreased by $250,00 over the same period. c) The company borrowed an additional $500,00 this year to invest in other areas of their business and expect to repay it within a few years. d) It calculates “book value” as part of its accounting equation but is not required to follow GAAP or IFRS standards for financial reporting (i.e., those that might require amortization). For example: book values are based on cost rather than market value if there have been no significant changes

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