Amram Company's current ratio is 2.0. Considered alone, which of the following actions would lower the current ratio?
A. Borrow using short-term notes payable and use the proceeds to reduce accruals.
B. Borrow using short-term notes payable and use the proceeds to reduce long-term debt.
C. Use cash to reduce accruals.
D. Use cash to reduce short-term notes payable.
E. Use cash to reduce accounts payable.
Answer: B
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Indicate whether the statement is true or false.