The current ratio of Scots Pine Limited is 1.5 today and the following three transactions...

80.2K

Verified Solution

Question

Finance

The current ratio of Scots Pine Limited is 1.5 today and the following three transactions are due to occur tomorrow:

A. The write-off of a customer debt previously provided for

B. The repayment of a short-term loan

C. The purchase of inventory on credit

Which one of these transactions tomorrow would cause the current ratio to decrease and why?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students