Amram Company's current ratio is 1.9. Considered alone, which of the following actions would reduce the company's current ratio?
A. Use cash to reduce accounts payable.
B. Borrow using short-term notes payable and use the proceeds to reduce accruals.
C. Borrow using short-term notes payable and use the proceeds to reduce long-term debt.
D. Use cash to reduce accruals.
E. Use cash to reduce short-term notes payable.
Answer: C
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