The Quick Ratio of a company is 0.8: 1. State with reason, whether the following transactions will increase, decrease or not change the Quick Ratio: (i) Purchase of loose tools for Rs. 2,000; (ii) Insurance premium paid in advance Rs. 500; (iii) Sale of goods on credit Rs. 3,000; (iv) Honored a bills payable of Rs. 5,000 on maturity.

The Quick Ratio of a company is 0.8: 1. State with reason, whether the following transactions will increase, decrease or not change the Quick Ratio: (i) Purchase of loose tools for Rs. 2,000; (ii) Insurance premium paid in advance Rs. 500; (iii) Sale of goods on credit Rs. 3,000; (iv) Honored a bills payable of Rs. 5,000 on maturity.

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