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)

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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