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 DecreaseReason: Both Current Assets and Current Liabilities will increase by the same amount. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles 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. You Might Also Like Calculate Proprietary Ratio from the following: August 13, 2022 Capital Employed Rs.8,00,000; Shareholders’ Funds Rs. 2,00,000. Calculate Debt to Equity Ratio. August 12, 2022 A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases: Case 1. C acquires 1/5th share from A. Case 2. C acquires 1/5th share equally form A and B. Case 3. A, B and C will share future profits and losses equally. Case 4. C acquires 1/10th share of A and 1/2 share of B. July 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.