Which of the following transactions will improve the quick ratio ........

Which of the following transactions will improve the quick ratio?

Sale of goods for cash

Sale of goods on credit

Issue of new shares for cash

All of the Above

- Option 1: Sale of goods for cash

- This transaction increases cash, a quick asset, without affecting current liabilities. Consequently, it improves the quick ratio.

- Option 2: Sale of goods on credit

- This transaction increases accounts receivable which is a current asset, hence, it improves the quick ratio.

- Option 3: Issue of new shares for cash

- This transaction brings in cash and increases quick assets, improving the quick ratio, as it doesn't affect current liabilities.

- Option 4: All of the Above will improve quick ratio

Quick ratio = Quick asset/current laibilties

Quick assets = Current asset - Stock - prepaid expense

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