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    Question

    Which among the following ratios will be effected

    because of Salaries paid in cash as paid in advance?
    A Current ratio Correct Answer Incorrect Answer
    B Quick Ratio Correct Answer Incorrect Answer
    C Debt Equity Ratio Correct Answer Incorrect Answer
    D Both a and b Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    In case of Current ratio, cash will go down and Prepaid Assets will go up, therefore not effecting the total Current Assets. 

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