AuthorTopic: 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.

CFA Discussion Topic: Understated current ratio

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