Collections from book debts: Option 1: increases current ratio Option 2: decreases current ratio Option 3: no effect on current ratio Option 4: none of the above

The answer is 'no effect on current ratio'. View full solution:

CUET Accountancy - Collections from book debts: | PYQs + Solutions

CUET Accountancy 2022 8 Aug Shift 2

Financial Statements

Medium

increases current ratio

decreases current ratio

no effect on current ratio

none of the above

✅ Correct Option: 3

Related questions:

15 May Shift 1

Match List-I with List-II

List-I	List-II
Accounting ratio	Type of accounting ratio
(A) Current ratio	(I) Liquidity ratios
(B) Stock turnover ratio	(II) Activity ratios
(C) Debt Equity ratio	(III) Solvency ratios
(D) Operating ratio	(IV) Profitability ratios

Choose the correct answer from the options given below:

24 May Shift 1

A trader carries an average inventory of Rs. 60,000. His inventory turnover ratio is 12 times. If he sells goods at a profit of 20% on revenue from operations, find out the gross profit.

30 May Shift 1

Which technique is used to assess profitability, solvency and efficiency of an enterprise through the technique of ratio analysis?

CUET Accountancy 2022 8 Aug Shift 2 PYQs

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