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Which of the following transactions will...

Which of the following transactions will improve the Current Ratio:

A

Cash Collected from Trade Receivables

B

Purchase of goods for cash

C

Payment to Trade Payables

D

Credit purchase of Goods

Text Solution

Verified by Experts

The correct Answer is:
C
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state giving reasons which of the following transactions would improve reduce or not change the current ratio, if current raito of a c company is (i)1:1 or (ii) 0.8:1 (a) cash paid to trade payables (b) purchase of stock in trade on credit (c ) purchase of stock in trade ffor cash (d) payment of divident payable (e ) bills payable discharged (f) bills receivable endorsed to a creditro (g) bills receivable endorsed to a creditor dishonoured.

Journalise the following transactions:

Journalise the following transactions: