Examveda
Examveda

Given,
Cash Rs. 10,000
Creditors Rs. 12,000
Debitors Rs. 20,000
Bills payable Rs. 8,000
Stock Rs. 30,000
Bank loan Rs. 10,000

If bank loan is increased by Rs. 20,000. the current ratio will decrease by

A. 20%

B. 25%

C. 30%

D. 40%

Answer: Option A


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