Home
Class 12
ACCOUNTS
A company's Current Ratio is 2:1 . After...

A company's Current Ratio is `2:1` . After cash payment to some of its creditors, Current Ratio will:

A

Decrease

B

Increase

C

As before

D

None of these

Text Solution

Verified by Experts

The correct Answer is:
B
Promotional Banner

Topper's Solved these Questions

  • ACCOUNTING RATIOS

    DK GOEL|Exercise Multiple Choice Questions (Solvency Ratios)|19 Videos

  • ACCOUNTING RATIOS

    DK GOEL|Exercise Multiple Choice Questions (Activity Ratios)|31 Videos

  • ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS

    DK GOEL|Exercise Multiple Choice Questions (viii) Guarantee of Profit to a Partner (HOTS)|13 Videos

  • ACCOUNTING TREATMENT OF GOODWILL

    DK GOEL|Exercise ILLUSTRATION 6.|1 Videos

Similar Questions

Explore conceptually related problems

Current Liabilities of company wer 100000 and its current Ratio was 2.5 :1.It paid 25000 to a creditor. Calculate current Ratio after the payment.

Current liabilites of a company were Rs 175000 and its current ratio was 2:1 .it paid Rs 30000 to a creditor . Calculate current ratio after payment.