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Question Practice

How does an increase in current liabilities affect current ratio, assuming current assets remain unchanged?

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MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Accounting Ratios
Question Bank

How does an increase in curren...

Single Answer MCQ
Q-00082820

How does an increase in current liabilities affect current ratio, assuming current assets remain unchanged?

1

Current ratio increases

2

Current ratio decreases

3

No effect on current ratio

4

Current ratio remains constant

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