The current ratio of the company is 3:1. State with reason whether the payment of? 20000 to the creditors will increase, decrease or not change the ratio.
Anyone can explain in detail
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Answer:
no change in ratio
Explanation: because payment to creditors decrease current asset (cash ) with 20000 as well as current liability by 20000 its effect is same in the ratio hence ratio will be remain same.
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