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What will be the impact of increase in Current liabilities on Working Capital turnover ratio? State with reason.

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

SOLUTION

Working Capital turnover ratio will increase because increase in Current liabilities will result in decrease in Working Capital.


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Previous PostTrade Payables turnover ratio of a Company is 5 times. What will be the impact of ‘Credit purchase’ of Rs. 50,000 on this ratio? State with reason.
Next PostWhat does a low working capital turnover ratio indicates?

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