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What will be the impact of ‘Cash collected from trade receivables’ on a Current ratio of 2: 1? State with reason.

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

SOLUTION

No effect because neither the Current assets nor the Current liabilities are affected. Only one Current asset is converted into another Current asset.


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Previous PostWhat will be the impact of ‘Cash paid to Trade Payables’ on a Current ratio of 8: 1? State with reason.
Next PostThe quick ratio of a company is 0.75: 0.50. Will credit purchase of goods Rs. 10,000 increase, decrease or not change the ratio? Give reason in support of your answer. (C.B.S.E. 2020. Punjab)

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