A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities makes a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will a. increase and decrease, respectively b. both increase c. both decrease 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 makes a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will a. increase and decrease, respectively b. both increase c. both decrease d. remain the same and decrease, respectively

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 15MCQ: Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels...

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13. A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities makes a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will

a. increase and decrease, respectively

b. both increase

c. both decrease
d. remain the same and decrease, respectively

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