If the company collects money from A/R Account which of the following will be correct?

Question

A- A/R Account will reduce

B- current Ratio will increase

C- current ratio will decrease

D- working capital will increase

Wasim khan wazir · Answer

Option A. ......,....,,....,..........................,

Annam khan · Answer

Account Receivable will reduce

Muhammad Saeed · Answer

A/R account will reduce as a result current ratio will also decrease.

Pavan Kumar · Answer

A. AR will reduce.

No impact on current ratio and working capital

Sufiyan Raza · Answer

It will decrease receivables and also current ratio and working capital will increase

shaimaa fawzy · Answer

A/R reduces and cash increses