Assuming liquid ratio of 1.2 : 1, cash collected from debtors would :
A. increase liquid ratio
B. decrease liquid ratio
C. have no effect on liquid ratio
D. increase gross profit ratio
Answer:C
Assuming liquid ratio of 1.2 : 1, cash collected from debtors would :
A. increase liquid ratio B. decrease liquid ratio C. have no effect on liquid ratio D. increase gross profit ratio