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Question
Quick Ratio of Roxy Traders is 0.8 : 1. State with reasons whether the following transaction will increase, decrease or will have no change on the ratio.
Issue of Debentures at Premium to Vendors
Give Reasons
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Solution
No change
Reason:
No change as no impact on Quick Assets and Current Liabilities.
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2025-2026 (March) Board Sample Paper - Analysis of Financial Statements
