Question

The current ratio of a company is2:1 state giving reason wich of the following would improve reduce or not change the ratio a) cash payed to yrade payables b) sale of fixed tangible assets for cash c)issue of new share for cash d) payment of final divident of final dividend already decline

Answer 1

Answer:

The current ratio is 2:1 State giving reasons which of the following transactions would improve, reduce and not change the current ratio : Payment of current liability , <br> (b) Purchased goods on credit, <br> (c ) Sale of a computer (Book value : Rs. 4,000) for Rs. 3,000 only , <br> (d) Sale of merchandise (goods) costing Rs. Rs. 10,000 for Rs. 11,000, <br> (e) Payment of dividend.