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.

Selling inventory for cash increases the liquid assets in the numerator of the ratio and does not affect the denominator.