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- Topic: Understated current ratio
| Author | Topic: Understated current ratio |
|---|---|
| sandipcfa @2002-09-11 19:52:00 |
Please refer to: http://www.cfacenter.com/study/study?action=33&losid=302. Can someone please explain how current ratio is understated and is not unaffected when ending inventory is mis-stated (understated), a/p understated and w/c is unaffected? |
| sandipcfa @2002-09-11 19:56:00 |
Sorry, current ratio is actually overstated.
And it was actually mis-stated Purchase, not mis-stated Ending Inventory. |
