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Why B is not the answer? If cash goes down then the numerator of current ratio would fall and hence the current ratio should fall. C’s answer is also logical but why not B?
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Question is which will increase the current ratio.
Purchasing the fixed asset with cash will decrease the current asset which will in turn decrease the ratio.
And in option C both CA AND CL fall because the ratio is greater than 1 that means CA>CL and as you know when both numerator and denominator are contradictory the smaller amount is more dominating i.e current liabilities and as CL is decreasing the ratio will rise.
Hope this helps!