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What will be the impact of ‘Cash Collected from Debtors’ on a liquid ratio of 1:1? State with reason. - Accounts

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What will be the impact of ‘Cash Collected from Debtors’ on a liquid ratio of 1:1? State with reason.

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उत्तर

When cash is collected from debtors and the liquid ratio is 1:1, there is no change. This is because the transaction only converts one liquid asset (debtors) into another (cash), leaving total liquid assets and current liabilities unaffected.

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पाठ 15: Project Work - PROJECT WORK PROBLEMS [पृष्ठ P-62]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 15 Project Work
PROJECT WORK PROBLEMS | Q 15. | पृष्ठ P-62
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