Assuming that the current ratio is 2 1 purchase of goods on credit would decrease the current ratio ........

General Accounting Principles Ratio analysis

Assuming that the current ratio is 2 : 1, purchase of goods on credit would decrease the current ratio

Increase Current ratio

Decrease Current ratio

have no effect on Current ratio

decrease gross profit ratio

Decrease in Current ratio, as the goods purchased on credit will increase both the current assets & the current liabilities

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