Question
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
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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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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