Day: September 30, 2022

A firm has £10,000 in the bank and buys inventory for £6,000 paying by cheque.

What will be the effect on its Current ratio and Liquid Capital ratio?

Select ONE answer:

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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