In respect of each of the following events, select all the effects resulting from that event that are shown in the list of effects:
(i) A bad debt written off;
(ii) An increase in the bank overdraft;
(iii) A purchase of six months’ inventory;
(iv) Payment of all amounts due to trade accounts payable that had been outstanding for longer than 90 days;
(v) An offer of 5% discount to all customers who settle their accounts within two weeks.
Effects
(a) Increased current ratio
(b) Reduced current ratio
(c) Increased acid test ratio
(d) Reduced acid test ratio.