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The 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)

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

SOLUTION

Increase
Reason: Quick Assets (Cash) will increase whereas there will be no change in current liabilities.


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Previous PostThe 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)
Next PostWhat will be the impact of ‘Bills Payable given to Trade Payables’ on a liquid ratio of I: 1? State with reason.

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