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What will be the impact of ‘Cash Paid to Trade Payables’ on a Current ratio of 1: 1? State the reason.

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

SOLUTION

Current ratio will not alter because both Current assets and Current liabilities are decreased by the same amount.


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Previous PostWhat will be the impact of ‘Cash Paid to trade Payables on a Current Ratio of 2: 1? State the reason.
Next PostWhat will be the impact of ‘Cash paid to Trade Payables’ on a Current ratio of 8: 1? State with reason.

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