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प्रश्न
The Current Ratio of Magnum Ltd. is 2.5 : 1. Which of the following transactions will result in decrease in this ratio?
विकल्प
Purchased goods for cash ₹ 73,000
Cash collected from debtors ₹ 41,000
Outstanding salaries paid ₹ 62,000
Repayment of long-term loan ₹ 8,00,000
MCQ
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उत्तर
Repayment of long-term loan ₹ 8,00,000
Explanation:
The Current Ratio is calculated as Current Assets divided by Current Liabilities. The repayment of a long-term loan involves a cash payment, which directly decreases Current Assets. However, a long-term loan is classified as a non-current liability, so its repayment does not change Current Liabilities. Because the numerator (Current Assets) decreases while the denominator (Current Liabilities) remains unchanged, the overall value of the Current Ratio decreases.
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