Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

A trader has a current ratio of $2 : 1$. Which event would cause this ratio to rise?

  • Abuying goods for resale on credit
  • Bbuying new machinery on credit
  • Cconverting an overdraft to a long-term loan
  • Dcredit customers paying their account

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