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What will be the impact of ‘Cash Paid to trade Payables on a Current Ratio of 2: 1? State the reason.

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

Current Ratio will improve because both Current assets and current liabilities are decreased by the same amount.


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Previous PostThe current ratio of a company is 2: I. Stale giving reason whether purchase of goods on credit will increase, decrease or not change the ratio. (C.B.S.E. 2020. Delhi)
Next PostWhat will be the impact of ‘Cash Paid to Trade Payables’ on a Current ratio of 1: 1? State the reason.

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