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प्रश्न
A transaction involving increase in both Current Ratio and Quick Ratio:
पर्याय
Purchase of Stock-in-Trade on Credit
Sale of Stock at Loss
Cash payment of Non-current Liability
Sale of Non-current Asset for Cash
MCQ
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उत्तर
Sale of Non-current Asset for Cash
Explanation:
Selling a non-current asset for cash directly increases your cash balance, which is a component of both Current Assets and Quick Assets. At the same time, this transaction has no effect on Current Liabilities. Since the numerators for both ratios increase while the common denominator remains unchanged, both the Current Ratio and the Quick Ratio rise simultaneously.
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