12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
    Assuming liquid ratio of 1.2 :1, cash collected from debtors would:

    A) increase liquid ratio

    B) decrease liquid ratio

    C) have no effect on Liquid ratio

    D) increase gross profit ratio

    Correct Answer: C

    Solution :

    [c] have no effect on liquid ratio


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