Question
Quick asset ratio is measured by Cash + Receivables / Current liabilities . Assume quick asset ratio is less than 100% (or 1:1) and that
Quick asset ratio is measured by Cash + Receivables / Current liabilities.
Assume quick asset ratio is less than 100% (or 1:1) and that the cash balance remains positive at all times.
State the effect the following event occurring on the reporting date would have on this ratio.
EVENT: Recognising impairment of a non-current asset
SELECT:
- decrease
- increase
- no change
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Basel III, The Devil And Global Banking
Authors: D. Chorafas
2nd Edition
0230353770, 9780230353770
