Collection from book debts converts debtors (a current asset) into cash (another current asset). Total current assets and current liabilities remain unchanged, hence the current ratio is not affected.
Collections from book debts:
Held on 8 Aug 2022 · Verified 13 Jul 2026.
increases current ratio
decreases current ratio
no effect on current ratio
none of the above
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Work through every CUET UG Financial Statements PYQ, year by year.