Test your Senior-level Liquidity Ratios Current Ratio skills in Financial Analysis Ratios. This timed assessment evaluates your expertise in Accounting.
Duration: 5 minutes
•40 questions
Time Remaining: 05:00
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40 questions remaining
Question 1 of 40Assessment
A company with a current ratio of 2.5 purchases a large amount of inventory on credit. What is the immediate impact on its current ratio and working capital?