Collection of debtors decreases current ratio

Q.  Collection of debtors
- Published on 19 Oct 15

a. Decreases current ratio
b. Increases current ratio
c. Has no effect on current ratio
d. None of the above

ANSWER: Decreases current ratio

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    Discussion

  • Dkam Chaudhary   -Posted on 20 Dec 19
    It will not have any effect on current ratio because if we collect the amount from debtors then same amount will get add to Cash where Cash is also a Current assets
  • Nikita   -Posted on 21 Nov 19
    Has no effect to current ratio because the debtor decrease but cash/bank increase
  • Jitender   -Posted on 08 Jul 19
    How effect please elaborate
  • Aastha   -Posted on 06 Nov 18
    Current Ratio=2.5
    Liquid Assets=60000
    Value of Stock=??

    Ans.=4000
  • ????   -Posted on 05 Jul 18
    how is it possible

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