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The 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)

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

SOLUTION

Decrease
Reason: Both Current Assets and Current Liabilities will increase by the same amount.


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Previous PostShould the bank overdraft be included in current liabilities?
Next PostWhat will be the impact of ‘Cash Paid to trade Payables on a Current Ratio of 2: 1? State the reason.

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