Extracts from the financial statements of Downs and Wellbeck Limited for the year ended 31 December 20X3 were as follows: Which one of the following statements is correct?
A)The quick ratio has declined but the current ratio has improved between 20X2 and 20X3.
B)Both the quick and current ratios have improved between 20X2 and 20X3.
C)Both the quick and current ratios have declined between 20X2 and 20X3.
D)The quick ratio has improved but the current ratio has declined between 20X2 and 20X3.

Question

Extracts from the financial statements of Downs and Wellbeck Limited for the year ended 31 December 20X3 were as follows:  Which one of the following statements is correct?
A)The quick ratio has declined but the current ratio has improved between 20X2 and 20X3. 
B)Both the quick and current ratios have improved between 20X2 and 20X3. 
C)Both the quick and current ratios have declined between 20X2 and 20X3. 
D)The quick ratio has improved but the current ratio has declined between 20X2 and 20X3.

Quizplus · Accepted Answer

The Answer of Extracts from the financial statements of Downs and Wellbeck Limited for the year ended 31 December 20X3 were as follows:  Which one of the following statements is correct?
A)The quick ratio has declined but the current ratio has improved between 20X2 and 20X3. 
B)Both the quick and current ratios have improved between 20X2 and 20X3. 
C)Both the quick and current ratios have declined between 20X2 and 20X3. 
D)The quick ratio has improved but the current ratio has declined between 20X2 and 20X3.

Extracts from the Financial Statements of Downs and Wellbeck Limited