Question

Current ratio of Adaar Ltd. is 2.5:1. Accountant wants to maintain it at 2:1. Following options are available.

1. He can repay Bills Payable
2. He can purchase goods on credit
3. He can take short term loan

Options

• Only (i) is correct

• Only (ii) is correct

• Only (i) and (iii) are correct

• Only (ii) and (iii) are correct

Answer 1

Only (ii) and (iii) are correct