Skip to content
Swamonk EduCare
  • Toggle website search
Menu Close

Blog

  1. Home>
  2. Doubts>
  3. Accountancy

The quick ratio of a company is 0.75: 0.50. Will credit purchase of goods Rs. 10,000 increase, decrease or not change the ratio? Give reason in support of your answer. (C.B.S.E. 2020. Punjab)

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

Decrease.
Reason: Current Liabilities (Creditors) will increase with no change in quick assets


Please Share This Share this content

  • Opens in a new window X
  • Opens in a new window Facebook
  • Opens in a new window Pinterest
  • Opens in a new window LinkedIn
  • Opens in a new window Viber
  • Opens in a new window VK
  • Opens in a new window Reddit
  • Opens in a new window Tumblr
  • Opens in a new window Viadeo
  • Opens in a new window WhatsApp

Read more articles

Previous PostWhat will be the impact of ‘Cash collected from trade receivables’ on a Current ratio of 2: 1? State with reason.
Next PostThe quick ratio of a company is 0.5: 0.75. Will cash sales of Rs. 5,000 increase, decrease or not change the ratio? Give reason in support of your answer. (C.B.S.E. 2020, Punjab)

You Might Also Like

How are the accumulated profits and losses distributed when there is change in profit sharing ratio amongst existing partners?

September 26, 2022

Is reserve capital a, part of ‘Unsubscribed Capital’ or ‘Uncalled Capital’. (C.B.S.E. 20 I8)

September 28, 2022

How the goodwill is valued under the super profit’s method?

September 26, 2022

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Address:94, Block A, New Industrial Town - 2, Faridabad, Haryana 121001
  • Contact:+91-8826447899Opens in your application
  • Email:[email protected]Opens in your application
Terms of Use | Privacy Policy | Cookies Policy
© 2019-2025 Swamonk - All Rights Reserved
Close Menu
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site it will imply that you agree with Swamonk EduCare's Terms of Use .Ok