The current ratio of a company is 2:1 which of the following suggestions would improve the...
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The current ratio of a company is 2:1 which of the following suggestions would improve the ratio, which would reduce it and which would not change it. i) ii) iii) iv) v) To pay a current liability To sell a motor car for cash at a slight loss To borrow money for a short time on an interest bearing promissory note. To purchase stocks for cash. To give an interest bearing promissory note to a creditor to whom money was to be paid. (5 marks) The current ratio of a company is 2:1 which of the following suggestions would improve the ratio, which would reduce it and which would not change it. i) ii) iii) iv) v) To pay a current liability To sell a motor car for cash at a slight loss To borrow money for a short time on an interest bearing promissory note. To purchase stocks for cash. To give an interest bearing promissory note to a creditor to whom money was to be paid. (5 marks)
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The detailed answer for the above question is provided below i To pay a current liability This wo... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Posted Date:
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