Interpretation of financial statment

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May 6, 2021 at 12:24 pm #619864
ethan12
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Why does purchase of inventory in credit affect current liability more than it affect current asset?
May 8, 2021 at 9:03 am #620022
P2-D2
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Hi,

It doesn’t change the value of the current liability more than it does the current asset, but it can have more of an impact on the current ratio.

Thanks
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