A trader provided the following information about his current ratio: Year 1 1.45 : 1 Year 2

Question:

A trader provided the following information about his current ratio:

Year 1

1.45 : 1

Year 2

1.75 : 1

Year 3

2.00 : 1

What would explain the change in this ratio?

A. Decrease in cash at bank

B. Decrease in inventory

C. Decrease in trade payables

D. Decrease in trade receivables

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Cambridge IGCSE And O Level Accounting Coursebook

ISBN: 9781316502778

2nd Edition

Authors: Catherine Coucom

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Question Posted: Sep 17, 2021 02:02 AM

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A trader provided the following information about his current ratio: Year 1 1.45 : 1 Year 2

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D Decrease in trade receivables EXPLANATIN The curre...View the full answer

Cambridge IGCSE And O Level Accounting Coursebook

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