Accounting for IGCSE & O level - Advanced Principles (Section 6 - No. 8)
If a company uses cash to pay its suppliers, what is the impact on its quick ratio?
Increases the quick ratio.
Decreases the quick ratio.
Has no impact on the quick ratio.
Cannot be determined.
Explanation
Paying with cash affects neither numerator nor denominator, so the ratio stays the same.
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