Advertisements
Advertisements
प्रश्न
What will be the impact of ‘Cash Paid to Creditors’ on a Current ratio of 1:1? State the reason.
अति संक्षिप्त उत्तर
Advertisements
उत्तर
When cash is paid to creditors at a current ratio of 1:1, the ratio decreases. This happens because both current assets and current liabilities fall equally, but with assets and liabilities already equal, assets become less, weakening liquidity.
shaalaa.com
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
