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प्रश्न
What will be the impact of ‘Cash Paid to Creditors’ on a Current Ratio of 2:1? State the reason.
अति संक्षिप्त उत्तर
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उत्तर
When cash is paid to creditors and the current ratio is 2:1, the ratio improves. This is because both current assets and current liabilities decrease by the same amount, strengthening the firm’s short-term liquidity position.
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