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متابعة

Which of the following does not help to increase Current Ratio?

<p><strong>(a)Issue of Debentures to buy Stock,</strong></p> <p><strong> (b)Issue of Debentures to pay Creditors,</strong></p> <p><strong>(c)Sale of Investment to pay Creditors,</strong></p> <p><strong>(d)Avail Bank Overdraft to buy Machine. </strong></p>

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تم إضافة السؤال من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
تاريخ النشر: 2014/09/20
georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

the answer A

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer: D= Avail Bank Overdraft to buy Machine  

Ahmed Abd Alwahab Awad Ibrahim
من قبل Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

(a)Issue of Debentures to buy Stock,

 

Because it is related to long term

Khaled Mohee Eldeen Abbas Mahmoud
من قبل Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

(b) Issue of Debentures to pay Creditors

one of the ways to improve the current ratio is to take a long-term loan for all of the current debt. By doing this, the current liabilities are completed eliminated which results in a terrific current asset ratio. The debt; however, is still there, but will be paid over a longer time span.

Issue of Debentures to buy Stock.

This affects only equity and long term liabilities so doesn't have any impact on current ratio. 

Sridhar Rajagopal
من قبل Sridhar Rajagopal , Financial Controller , Sai Krishna Bio Tech

perfect answer is A if you go for D and unused amount of O/D may be possible but prudency isUse O/D ad and when required as it carries interest which also increase your o/d namely C/L

 

 

Anayatullah Tahir
من قبل Anayatullah Tahir , Finance Manager , Etqan Projects

Option A,

Because that option does not involve any current asset or current liability

FITAH MOHAMED
من قبل FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

ANSWER D

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