Acquiring land by taking out a long-term mortgage will not affect the current ratio.

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Mariela Contreras · Accepted Answer

Final Answer : True, Explanation :  The current ratio measures a company's short-term liquidity, which is the ability to pay off its current liabilities with its current assets. Acquiring land through a long-term mortgage does not affect the current assets or current liabilities of the company, so it does not impact the current ratio.

Acquiring land by taking out a long-term mortgage will not affect the current ratio.

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