A transaction that does not bring change

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

A transaction that does not bring change both in the Current Ratio and Quick Ratio will be:

Options:

Sale of Stock-in-Trade at a loss

Cash received from trade debtors

Cash payment of a Non-current Liability

Sale of furniture for cash

Correct Answer:

Cash received from trade debtors

Explanation:

Cash received make cash increase but debtors decrease which brings no change in current asset and current liability will also not change from this.