Question

Identify the transaction that has no effect on the current ratio

Answer 1

Bills receivable collected.

Explanation:

The question is incomplete. The choice of answers is not displayed. Please refer to the attached picture for the complete question and the solution based on those choices is given below.

• The transaction that has no effect on the current ratio is when bills receivable is collected.
• Bills receivable is nothing but the invoices on which the firm is expecting payment with a specific time frame for goods or service already supplied.
• Option B is the answer.