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प्रश्न
What will be the impact of ‘Cash Paid to Creditors’ on a Current ratio of 8:1? State with reason.
लघु उत्तरीय
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उत्तर
When cash is paid to creditors and the current ratio is 8:1, the ratio decreases. This happens because both current assets and current liabilities fall by the same amount, which slightly reduces the proportion of current assets to current liabilities.
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