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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
a. increase and decrease, respectively
b. both increase
c. both decrease
d. remain the same and decrease, respectively
d. remain the same and decrease, respectively
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