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What will be the impact of ‘Bills Payable given to Creditors’ on a liquid ratio of 1 : 1? State with reason. - Accounts

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प्रश्न

What will be the impact of ‘Bills Payable given to Creditors’ on a liquid ratio of 1 : 1? State with reason.

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उत्तर

When bills payable are given to creditors at a liquid ratio of 1 : 1, the ratio increases. This is due to a fall in both liquid assets and current liabilities, but the reduction in liabilities is larger, improving the company’s capacity to satisfy short-term obligations using liquid assets.

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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 14: Ratio Analysis - SHORT ANSWER QUESTIONS [पृष्ठ १४.१०८]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 14 Ratio Analysis
SHORT ANSWER QUESTIONS | Q 35. | पृष्ठ १४.१०८
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