singingmyblues
Active Member
Hi, can I have a question on accounting ratios please:
1. CT2 Sep 2015/8
A company's directors are considering manipulating their current ratio by delaying the payment of trade payables that would normally occur before the year end, until some time after the year end. Which of the following statement is correct?
Answers: if the company has a positive bank balance and a current ratio of less than 1:1 then the current ratio will be increased
and if the company has a positive bank balance and a current ratio of more than 1:1 then the current ratio will not be increased
1. CT2 Sep 2015/8
A company's directors are considering manipulating their current ratio by delaying the payment of trade payables that would normally occur before the year end, until some time after the year end. Which of the following statement is correct?
Answers: if the company has a positive bank balance and a current ratio of less than 1:1 then the current ratio will be increased
and if the company has a positive bank balance and a current ratio of more than 1:1 then the current ratio will not be increased