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Commerce · Q813

Accounting

Graduate and Post Graduate · Commerce · question 813

Q813

The current ratio of a firm is 2 : 1. Which one of the following suggestion would improve the ratio?

A.
To pay a current liability
Answer
B.
To borrow money for a short period on an interest bearing promissory note
C.
To purchase goods for cash
D.
To give an interest bearing promissory note to a creditor in payment of the full amount due to him

Answer: Option A

Solution

Answer: Option A
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