Question
The Quick ratio is measured by (Cash + Receivables) / Current liabilities . Assume this ratio is currently 80% (or 0.8:1) and that the cash
The Quick ratio is measured by (Cash + Receivables) / Current liabilities.
Assume this ratio is currently 80% (or 0.8:1) 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: A payment to buy back a portion of shares from investors
would the ratio increase, decrease or no change?
answer asap pls
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Accounting For Managers Interpreting Accounting Information For Decision Making
Authors: Paul M. Collier
5th Edition
111900294X, 978-1119002949
