Practice question
Question
Current ratio of Vidur Pvt. Ltd. is 3:2. Accountant wants to maintain it at 2:1. Following options are available
(i) He can repay bills payable.
(ii) He can take short-term loan.
(iii) He can purchase goods on credit.
Choose the correct option.
Explanation
Only (i) is correct ratio analysis correct; liquidity profitability ratios calculation interpretation.
Discussion
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