Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 6)
In general, which of the following actions is most likely to improve a company's quick ratio?
Purchasing inventory on credit.
Paying off a short-term loan with cash.
Selling inventory for cash.
Taking out a long-term loan.
ব্যাখ্যা
Selling inventory for cash increases the liquid assets in the numerator of the ratio and does not affect the denominator.