Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

If the company collects money from A/R Account which of the following will be correct?

 

A- A/R Account will reduce

B- current Ratio will increase 

C- current ratio will decrease 

D- working capital will increase

user-image
Question added by ryad abdalla , chief of accounts , Evntoo
Date Posted: 2015/12/26
Wasim khan wazir
by Wasim khan wazir , Finance Specialist , Mott Macdonald

Option A. ......,....,,....,..........................,

Annam khan
by Annam khan , Customer Service Cum Receptionist , Bashiri General Trading LLC, Dubai UAE

Account Receivable will reduce

Muhammad Saeed
by Muhammad Saeed , Experienced Associate Auditor (Secondment) , Deloitte and Touche (Middle East)

A/R account will reduce as a result current ratio will also decrease.

Pavan Kumar
by Pavan Kumar , Director & CFO , Sri Medha Academy Private Limited

A. AR will reduce. 

No impact on current ratio and working capital

Sufiyan Raza
by Sufiyan Raza , Senior Document Controller , Olsen & Partners Interiors LLC

It will decrease receivables and also current ratio and working capital will increase

shaimaa fawzy
by shaimaa fawzy , Assistant Auditor , KPMG

A/R reduces and cash increses 

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.