[amp_mcq option1=”20%” option2=”25%” option3=”30%” option4=”40%” correct=”option1″]<\/p>\n
The correct answer is A. 20%.<\/p>\n
Current ratio is a measure of a company’s liquidity. It is calculated by dividing current assets by current liabilities. A higher current ratio indicates that a company is more liquid and has more assets that can be converted into cash quickly to pay off its debts.<\/p>\n
In this case, the current ratio is 2.5, which is considered to be a good ratio. If the bank loan is increased by Rs. 20,000, the current ratio will decrease to 2. The decrease in current ratio is due to the fact that the increase in bank loan is a current liability, while the increase in cash is not a current asset.<\/p>\n
The decrease in current ratio is not necessarily a bad thing, as it may be due to the company taking on more debt to finance its growth. However, it is important to monitor the current ratio over time to ensure that it does not fall too low. A low current ratio may indicate that the company is having difficulty meeting its short-term obligations.<\/p>\n
Here is a brief explanation of each option:<\/p>\n
[amp_mcq option1=”20%” option2=”25%” option3=”30%” option4=”40%” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-58392","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n