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We can manipulate current ratio without changing financial position?

True False. Yes( How)

Accounting Financial Management Credit Risk
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Question added by BILAL IQBAL , Officer Financial Controller , Union National Bank
Date Posted: 2014/04/08
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Imtiaz Hussain Bugti
by Imtiaz Hussain Bugti , Senior Officer, Credit & Risk , Gulf Finance Corporation - Jeddah

False

BILAL IQBAL
by BILAL IQBAL , Officer Financial Controller , Union National Bank

Assest =300,000   Liabilities=200,000   Current Ration is1.5

 

if we pay off50,000 for current laibilaties ( any accrued expencse) just before closing accounts

 

Assest250,000 and liabilities150,000 the current ration  will be1.67, 

 

Shafiulla Mohammad
by Shafiulla Mohammad , Customer Service Adviser , University of Bedfordshire

Financial Position, does not only imply profit or loss for certain. It also involves balance sheet. Hence, it is not possible to manipulate current ratio without a change in the financial position.

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