Question

Current ratio of Adaar Ltd. is 2.5 : 1. Accountant wants to maintain it at 2 : 1. Following options are available.

1. He can repay Bills Payable.
2. He can purchase goods on credit.
3. He can take short term loan.

Choose the correct option.

Options

• Only (i) is correct.

• Only (ii) is correct.

• Only (i) and (iii) are correct.

• Only (ii) and (iii) are correct.

Answer 1

Only (ii) and (iii) are correct.