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Solution - Liquidity Ratios

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Question

What is meant by 'Liquidity of Business'?

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The current ratio of X. Ltd is 2:1. State with reason which of the following transaction would

i. Increase or ii. decrease or iii. not change the ratio

1. Included in the trade payables was a bills payable of Rs.9,000 which was met on maturity.

2. Company issued 1,00,000 equity shares of Rs.10 each to the Vendors of machinery purchased.

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Solution for concept: Liquidity Ratios. For the courses 12th CBSE (Arts), 12th CBSE (Commerce), 12th CBSE (Science)
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