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Which of the following would NOT improve the current ratio? le.

 

Borrow short term to finance additional fixed assets.

 

Issue long-term debt to buy inventory.

 

Sell common stock to reduce current liabilities.

 

Sell fixed assets to reduce accounts payab

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/03/26
Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer(A) is the correct answer

loai allam
by loai allam , Biomedical Engineer , Ministry of Health

A clearly is the answer . Because all options do improve the finance section except option a.

Mahmoud Al Dafrawi  CMA andFMVA
by Mahmoud Al Dafrawi CMA andFMVA , Accounting & Financial Advisory , BDO - Dr. Mohamed Al-Amri & co.

Issue long-term debt to buy inventory Because this is the only one which will increase current assets without increasing current liabilities. Current Ratio = current assets /current liabilities

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

Borrow short term to finance additional fixed assets

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Mazhar Ali Kazmi
by Mazhar Ali Kazmi , Subject Specialist/Senior Subject Specialist/Senior Headmaster , Education Department, Govt. of the Punjab, Lahore

The only logical answer is option A because all other options seem to improve the finance section except option A.

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

Borrow short term to finance additional fixed assets

would NOT improve the current ratio

Sell common stock to reduce current liabilities

Deleted user
by Deleted user

Borrow short term to finance additional fixed assets.

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(A) is the Ans.

 

Short term Borrowing to finance the additional fixed assets.

Mark Angelo Damuag
by Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

The answer would be to Borrow short term to finance additional fixed assets.

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>>>>>>>Borrow short term to finance additional fixed assets.

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