Question

16. State, giving reasons, which of the following transactions would improve, reduce or not change the
Current Ratio, if Current Ratio of a company is (0) 1:1; or (ii) 0.8 : 1:
(a) Cash paid to Trade Payables.
(b) Purchase of Stock-in-Trade on credit.
(c) Purchase of Stock-in-Trade for cash.
(d) Payment of Dividend payable.
(e) Bills Payable discharged.
(f) Bills Receivable endorsed to a Creditor.
(g) Bills Receivable endorsed to a Creditor dishonoured.​

Answer 1

Answer:

(d) Payment of Dividend payable.

This is right answer