What will be the impact of “ sale

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Target Exam

CUET

Subject

Accountancy Part B

Chapter

Accounting Ratios

Question:

What will be the impact of “ sale of goods worth Rs 5000 on cash” on Current Ratio and Quick Ratio ?

Options:

Current Ratio will not change, Quick Ratio will improve

Current Ratio will improve, Quick ratio will improve

Current Ratio will not change, Quick Ratio will not change

Current Ratio will improve, Quick Ratio will not change

Correct Answer:

Current Ratio will not change, Quick Ratio will improve

Explanation:

The correct answer is Option (1) →

Current Ratio will not change, Quick Ratio will improve