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Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting?.

Solutions for Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.

Here you can find the meaning of Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting? defined & explained in the simplest way possible. Besides giving the explanation of Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting?, a detailed solution for Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting? has been provided alongside types of Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting? theory, EduRev gives you an ample number of questions to practice Assume that Net Working Capital is positive for a business entity and its current ratio is 1.2 times. How would the following events affect (increase/decrease/no effect) the current ratio of the company. Also provide the conceptual reason behind each effect.1. Inventory is purchased on credit.2. Repayment of last installment of a long term loan.3. A credit customer pays off on a discount of 3%.4. Improvement in current assets through new equity issue.What will be the following:Event ?Effect?Reason? Related: Financial Ratios - Ratio Analysis, Financial Analysis and Reporting? tests, examples and also practice B Com tests.