Question
When a company's current ratio stands at 2:1, indicating
it has double the amount of current assets as liabilities, how does purchasing goods on credit affect this financial metric?Solution
Say for example we have current asset of Rs. 200 & current liabilities of Rs. 100 as a result the current ratio is 2:1, now suppose if we are purchasing goods on credit worth Rs. 50. This will result in increase in current asset by Rs. 50 (Inventory purchased) & also increase in current liability by Rs. 50 (Creditors increased). Now the new current ratio is 250/150 i.e., 1.66. hence the ratio has decreased.
Which test is used when sample size is large (>30) and population standard deviation is known?Â
With respect to probiotics, which of the following statements is INCORRECT?
Chlorophyll a is a primary pigment in photosynthesis, but what role do accessory pigments such as chlorophyll b and carotenoids play?
Which type of emulsion is found in milk?
The highest cooking losses are reported for
A mass of unorganised regenerated cells in culture medium is called
The publisher of Indian Journal of fertilizer is
The FRP is the minimum price that sugar mills have to pay to sugarcane farmers and is declared every year before the commencement of sugar year. Who app...
The important biological control insect for Parthenium hysterophorus in India is
The causal agent of anthracnose disease in mango is
Relevant for Exams:
