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Got it !! Thanks ya
thank you so much!!
cant”
Thanks alot..
Currently: *assume that current asset including inventory*
current ratio – current asset / current liability
quick ratio – (current asset – inventory) / current liability
If increasing inventory:
current ratio – (current asset + new inventory) / (current liability + new inventory)
quick ratio – (current asset – inventory) / (current liability + new inventory)
*conclusion – It will be decrease in both current and quick ratio ?
*can I get an example from sir?