Final answer:
The current ratio is influenced by both current assets and current liabilities. Only the sale of inventory on credit (accounts receivable) will decrease the current ratio, as it could lower inventory without an increase in other current assets. Other options either do not affect current liabilities or increase current assets.
Step-by-step explanation:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It is calculated by dividing current assets by current liabilities. Paying off long-term debt with cash, issuing stock for cash, and the sale of inventory for cash all increase the current ratio because they either increase current assets or do not affect current liabilities. However, the sale of inventory on credit will decrease the current ratio if it does not also result in an increase in cash or other current assets, as it reduces inventory without increasing current assets, while accounts receivable is already counted as a current asset.