9 Views

Question : Assuming that the Current Ratio is 2: 1, the Sale of a fixed asset on a credit of 2 months would _____.

Option 1: Increase current ratio

Option 2: Decrease current ratio

Option 3: Neither increase nor decrease

Option 4: Increase debt equity ratio


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 9th Jan, 2024

Correct Answer: Increase current ratio


Solution : Answer = Increase the current ratio

Assuming C. Ratio = 2 :1

Sale of fixed Assets on Credit

$=\frac{20,000}{10,000}$

Would increase the Current Ratio
Hence, the correct option is 1.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books