Question

Current ratio of Cadila Ltd. is 2.4 : 1. Accountant wants to maintain it at 2 : 1. Following options are available.

1. He can repay the creditors
2. He can purchase goods on credit
3. He can take short term loan from the bank.

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.