Which of the following transactions will improve the quick ratio?

All of the above

The correct answer is option 4- All of the above.

Sale of goods for cash, Sale of goods on credit, Issue of new shares for cash all will improve the quick ratio.

Liquid ratio = Liquid assets/Current liabilities

• Option 1: Sale of goods for cash → Inventory (not a quick asset) converts into cash (quick asset), so quick assets increase → ratio improves.
• Option 2: Sale of goods on credit → Inventory converts into debtors (quick asset), so quick assets increase → ratio improves.
• Option 3: Issue of new shares for cash → Cash increases without increasing current liabilities → quick assets increase → ratio improves.