A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities make a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will a. both decrease b. increase and decrease, respectively c. both increase d. remain the same and decrease, respectively
A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities make a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will a. both decrease b. increase and decrease, respectively c. both increase d. remain the same and decrease, respectively
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities make a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will
a. both decrease
b. increase and decrease, respectively
c. both increase
d. remain the same and decrease, respectively
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