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प्रश्न
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 ₹2,000; (ii) Insurance premium paid in advance ₹500; (iii) Sale of goods on credit ₹3,000; (iv) Honoured a bills payable of ₹5,000 on maturity.
टिप्पणी लिखिए
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उत्तर
| Transaction | Impact |
| Purchase of loose tools Rs 2,000 | As cash is going out, quick assets are decreasing by 2,000. So, quick ratio will decrease. |
| Insurance premium paid in advance Rs 500 | As cash is going out, quick assets are decreasing by 500. So, quick ratio will decrease. |
| Sale of goods on credit Rs 3,000 | As debtors increase, quick assets also increase by 3,000. So, quick ratio will increase. |
| Honoured a bills payable Rs 5,000 on maturity | As cash is going out, quick assets are decreasing by 5,000 and since bill is honoured current liabilities are decreasing. Thus, quick ratio will decrease. |
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