Cash flow

Maneesh 30 April 2020 at 14:47 PM

XYZ company is a manufacturer of industrial products and employs a calendar year for financial reporting 
purposes. Assume that total quick assets exceeded total current liabilities both before and after each transaction 
described. Further assume that Depoole has positive profits during the year and a credit balance throughout the year
in its retained earnings account.
The collection of a current accounts receivable of $32,000 would
A)  Increase the quick ratio.
B) Increase the current ratio.
C) Decrease the current ratio and the quick ratio
D) Not affect the current or quick ratios

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FACULTY 10 May 2020 at 03:27 PM

Not affect the current or quick ratios. when accounts receivable collects it comes in the form of cash, cash is also a quick asset. (option D)

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