Question

Liquid Assets of a Company are ₹ 15,00,000 and Current Liabilities are ₹ 20,00,000. Which of the following will increase the Liquid Ratio?

Options

• Purchase of goods on credit for 2 months

• Sale of goods costing ₹ 1,00,000 at a loss of ₹ 40,000

• Cash paid to a trade Creditor

• Payment of Outstanding Salaries

Answer 1

Sale of goods costing ₹ 1,00,000 at a loss of ₹ 40,000

Explanation: Liquid Assets are increased, whereas Current Liabilities remain unchanged.