Bakshi Ltd has a current ratio of 2.0 and an acid test ratio of 1.0. If some

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Bakshi Ltd has a current ratio of 2.0 and an acid test ratio of 1.0. If some current liabilities are paid off using cash, what would be the effect on these ratios?

Current ratio Acid test ratio

A. Decrease Decrease

B. Decrease Increase

C. Increase Increase

D. Increase Decrease

E. None of these

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Financial Accounting An International Introduction

ISBN: 9781292102993

6th Edition

Authors: David Alexander, Christopher Nobe

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Question Posted: Apr 17, 2024 04:13 AM

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Bakshi Ltd has a current ratio of 2.0 and an acid test ratio of 1.0. If some

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Financial Accounting An International Introduction

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