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A firm has a current ratio of 2:1. If it uses cash to pay off a portion of its accounts payable, what is the effect on this ratio?

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By TheQuizWire
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Source Business Knowledge Database
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Fact Checked
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Difficulty Medium
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Published 17 May 2026
📚 Topics: Business Business and Economics
🎯 Exams: CSS GEN NTS PMS UK_CS US_COMP
🏷️ Tags: Corporate Finance Financial Accounting Liquidity Management Ratio Analysis

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