Question

Quick ratio of Megamart Ltd. is 1.5 : 1. Which of the following transactions will result in decrease in this ratio? 

Options

• Sale of goods costing ₹ 10,000 for ₹ 12,000.

• Cash collected from trade receivables ₹ 41,000.

• Purchase of goods for cash ₹ 38,000.

• Creditors were paid ₹ 11,000.

Answer 1

Purchase of goods for cash ₹ 38,000.

Explanation:

Current assets are going to fall as a result of this transaction.