CUET Preparation Today
Which of the following transaction involves a decrease in both the Current Ratio and the Quick Ratio? |
Sale of Non-current assets for cash Cash payment of a Non-current Liability Sale of Stock-in-Trade at a loss Issue of Bonus Shares |
Cash payment of a Non-current Liability |
No effect on current liability but current assets and quick assets decrease by the amount paid for non current liability as cash is decreased which makes both ratio to reduce. |
