|Author||Topic: Understated current ratio|
|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?|
|Sorry, current ratio is actually overstated.
And it was actually mis-stated Purchase, not mis-stated Ending Inventory.