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Current ratio of Jai Pvt. Ltd. is 3:2
Accountant wants to maintain it at 2:1.
Following options are available:
I. He can purchase goods on credit
II. He can repay bills payable
III. He can take short-term loan
Choose the correct option.

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Only I is correct

Only II is correct

Only I and III are correct

Only II and III are correct

answer is B.

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Detailed Solution

If current ration to becomes 2 : 1 liabilities are to be payable i.e. here Bills payable

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