View all questions & answers for the CWM_LEVEL_2 exam
Section B (2 Mark)
Which of the following statements is most correct?
If a company increases its current liabilities by Rs1,000 and simultaneously increases its inventories by Rs1,000, its current ratio must rise.
If a company increases its current liabilities by Rs1,000 and simultaneously increases its inventories by Rs1,000, its quick ratio must fall.
A company’s quick ratio may never exceed its current ratio.
Answers b and c are correct.
Submit