Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

Marcus acquired a non-current asset. Rather than paying the full amount straight away, he chose to make instalment payments over the following six months. What impact did this decision have over those six months?

  • Abank overdraft was lower
  • Bcurrent ratio was higher
  • Cliquidity was worse
  • Dnon-current liabilities were greater

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