Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Current ratio (https://www.askmehelpdesk.com/showthread.php?t=41877)

  • Nov 9, 2006, 08:05 PM
    jfi01
    Current ratio
    What effect, if any, does a payment received in full (receivable) is there on current ratio? -increase, decrease, or no effect - why??

    Any help would be greatly appreciated!
  • Nov 10, 2006, 09:33 PM
    CaptainForest
    No effect.

    The JE to record it would be:
    Dr. Cash 100
    Cr. AR 100

    Therefore, there is NO change in current assets. No change in current liabilities and therefore, no change in the current ratio.

    • All times are GMT -7. The time now is 12:06 PM.