Solution of Question number 30 of the Accounting Ratios of TS Grewal Book 2023-24 CBSE Board?
Quick Ratio of a Company is 2 : 1. State, giving reasons, which of the following transactions would (i) improve, (ii) Reduce, (iii) Not change the Quick Ratio:
(a) Purchase of goods for cash; (b) Purchase of goods on credit; (c) Sale of goods (costing ₹ 20,000) for ₹ 20,000; (d) Sale of goods (costing ₹ 20,000) for ₹ 22,000; (e) Cash received from Trade Receivables.
[Ans.: (a) Reduce; (b) Reduce; (c) Improve; (d) Improve; (e) No Change.]