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A company’s current ratio is 2 : 1. After cash payment to some of its creditors, current ratio will ______. - Accounts

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Question

A company’s current ratio is 2 : 1. After cash payment to some of its creditors, current ratio will ______.

Options

  • Decrease

  • Increase

  • As before

  • None of these

MCQ
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Solution

A company’s current ratio is 2 : 1. After cash payment to some of its creditors, current ratio will increase.

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Chapter 14: Ratio Analysis - OBJECTIVE TYPE QUESTIONS [Page 14.161]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 14 Ratio Analysis
OBJECTIVE TYPE QUESTIONS | Q 19. | Page 14.161
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