Assuming that the Current Ratio is 2 : 1, state giving reason whether the ratio will improve, decline or will have no change in case a Bills Receivabl

Question

Assuming that the Current Ratio is 2 : 1, state giving reason whether the ratio will improve, decline or will have no change in case a Bills Receivabl

Assuming that the Current Ratio is 2 : 1, state giving reason whether the ratio will improve, decline or will have no change in case a Bills Receivable is dishonoured.

Monjur Alahi

6 views

2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Salim Ahmed Kawsar

There is no change in the Current Ratio. Bills Receivable dishonoured will not change the total of current assets because one current asset (B/R) will b replaced by another (Debtor). Therefore, Current Ratio will remain same.

6 views Answered 2023-02-05 15:29