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A- no Affect on current Ratio B - Postive Affect on Current ratio C- Negative affect on current ratio D- not related to current ratio
Surely, positive affect on current ratio .
Eg:- Current Assets - 100,000/-, Current Liabilities - 75,000/- Ratio - 1.33
If you pay any supplier, current liabilities will decrease - In this Eg:- Pay 25,000/- to supplier
Current Ratio - 100,000 / 50,000 = 2 - better than the previous ratio.
