quick ratio 1.5:1 then purchase of goods for cash it will improve ,reduce or not change
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Answered by
0
No change... Because in quick ratio inventory and prepaid expenses are not included
nikhil149007:
Quick assets= Current assets - Inventories. Purchase of goods for cash will reduce quick assets.
ya ya sorry... mne glt way me smjh liya
Answered by
1
Goods purchased for cash will reduce the total of quick assets. Therefore, the quick ratio will reduce.
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